Which of the following is the best definition of economic growth?
A) the opportunity cost of capital
B) the sustained expansion of production possibilities
C) the investment in capital and consumption goods by an economy
D) increased development of land and entrepreneurship
E) the opportunity cost of consumption
B
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A fundamental aspect of economics is to
A) ensure that every firm makes a profit. B) analyze how choices are made. C) satisfy all our wants. D) make sure that our resources will always be unlimited.
Explain why the current abatement levels for the two sources do not achieve cost effectiveness.
Suppose that there are only two stationary sources in a given air quality region. The first source has been in existence for several years, while the second source is new. The following functions represent marginal abatement costs (MAC) for each polluting source: MACEX = 10.0 + 0.7A EX, MACN = 9.2 + 0.5A N, whereAEX is the percentage abatement level for the existing source, and AN is the percentage abatement level for the new source. Assume that the aggregate abatement standard (i.e., for the region as a whole) is set at 40 percent and that the two firms’ current abatement levels areAEX = 10 and AN = 30.
Real GDP per person in Richland is $20,000, while real GDP per person in Poorland is $10,000. However, Richland's real GDP per person is growing at 1 percent per year, and Poorland's real GDP per person is growing at 3 percent per year. After 50 years, real GDP per person in Richland minus real GDP in Poorland is:
A. positive but less than $10,000. B. zero. C. negative. D. positive and greater than $10,000.
A decrease in demand for a product will cause the price of the product to fall and supply of the product to decrease.
Answer the following statement true (T) or false (F)