The statement "What the economy needs is a good war" is a perverse way of acknowledging that
a. patriotism is an important factor influencing people's acceptance or rejection of specific political parties and that these parties affect national economic performance
b. over-population can ignite a population-induced business cycle
c. wars require new technology, illustrating the idea that necessity is the mother of invention
d. governments can be a cure worse than the disease
e. war generates new and multiple demands for goods in the economy and that can jump start an economy that is in a recession into its recovery phase
E
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Which of the following actions is not an example of the production coordination provided by firms?
A) Manage production activities of workers B) Pay wages to workers C) Establish industry safety regulations D) Set the production schedule for each week
The cost of a choice is
A) the price of the product selected. B) the price of the product not selected. C) the next best opportunity. D) all of the opportunities given up.
Canada and the U.S. both produce wheat and computer software. Canada is said to have the comparative advantage in producing wheat if
a. Canada requires fewer resources than the U.S. to produce a bushel of wheat. b. the opportunity cost of producing a bushel of wheat is lower for Canada than it is for the U.S. c. the opportunity cost of producing a bushel of wheat is lower for the U.S. than it is for Canada. d. the U.S. has an absolute advantage over Canada in producing computer software.
If price were $6, there would be a (shortage or surplus) _____ of _____.
