Why do we need methods of allocating scarce resources?
What will be an ideal response?
Because resources are scare, it is not possible to fulfill everyone's wants. As a result, some method of deciding which wants will be fulfilled and which will not—that is, some method of allocating resources—must be utilized.
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Describe how the labor force, the nation's capital stock, and the rate of technical progress contribute to potential GDP growth and labor productivity
In the Soviet Union, most goods and services were produced by __________________.
Fill in the blank(s) with the appropriate word(s).
Halvorson Construction has an investment project that would cost $150,000 today and yield a one-time payoff of $167,000 in three years. What is the highest interest rate at which Halvorson would find this project profitable?
a. 7% b. 6% c. 5% d. It is not profitable at any of these interest rates.
The differing elasticities of the supply and demand curves for labor mean that the burden of the payroll tax is placed mostly on ______.
a. investors b. government c. firms d. workers