Devoting more of a country’s resources for producing consumer goods means
A. economy is using its resources for future production.
B. fewer resources to producing investment goods.
C. country will grow more rapidly in the future.
D. productivity of the invested capital is extremely high.
Answer: B
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In order to determine whether to major in economics, a rational individual compares the ________ of the decision
A) normative benefits and positive costs B) positive benefits and normative costs C) marginal benefit and marginal cost D) self-interest and social-interest E) opportunity cost and the sunk cost
If the actual capital stock exceeds the desired capital stock due to a cycle of overbuilding, then
A) net investment will fall dramatically. B) net investment will increase dramatically. C) net investment will not change. D) the effect on net investment is unknown.
International comparisons of per capita GDP may not reflect the standard of living because __________. a. currency exchange rates may not fully account for differences in purchasing power, and thus people in a country with high per capita GDP may have a lower standard of living because of high local prices for food, housing, or other necessities. b. people in some countries enjoy poverty and do
not mind a lack of access to medicine, education, nutritious food, and safe drinking water. c. markets do not exist in less-developed countries. d. None of the answers above are correct.
The basic difference between macroeconomics and microeconomics is:
a. microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade. b. microeconomics concentrates on the behavior of individual consumers while macroeconomics focuses on the behavior of firms. c. microeconomics concentrates on the behavior of individual consumers and firms while macroeconomics focuses on the performance of the entire economy. d. microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment.