Discuss the relationship between U.S. competitiveness relative to other countries and standards of living in the United States
What will be an ideal response?
There is very little relationship between U.S. competitiveness and the American standard of living. First, the United States is not in competition with other countries even though U.S. firms may compete with firms in other countries. Second, trade is mutually beneficial, so improvements in productivity in one country can make people better off in another country. The standard of living in the United States is a function of how well the U.S. economy functions within the country and not relative to other countries.
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The short-run market supply curve for a perfectly competitive market is obtained by summing the part of each firm's
A) AVC curve that lies above its MC curve. B) MC curve that lies above its AVC curve. C) AVC curve that lies below the MC curve. D) MC curve that lies below the AVC curve.
An unregulated paint factory that pollutes a river results in ______ and _____
A. overproduction; a price that exceeds the marginal benefit from the good B. underproduction; a price that equals the marginal benefit from the good C. the efficient quantity produced; a marginal benefit equal to the mar-ginal social cost D. an inefficient quantity produced; a marginal benefit below the mar-ginal social cost
Refer to Table 19-13. Real GDP for Vicuna for 2013 using 2015 as the base year equals
A) $4,620. B) $5,100. C) $5,650. D) $5,850.
Suppose the intersection of the IS and LM curves is to the right of the FE line. What would most likely eliminate a disequilibrium among the asset, labor, and goods markets?
A) A rise in the price level, shifting the LM curve up and to the left. B) A fall in the price level, shifting the LM curve down and to the right. C) A rise in the price level, shifting the IS curve up and to the right. D) A fall in the price level, shifting the IS curve down and to the left.