Describe the mechanism by which supply creates its own demand.
What will be an ideal response?
In order to supply goods, suppliers must employ workers, whose incomes increase as aa result of their labor. They use this additional income to demand goods of an equivalent value to those they supply.
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Consider two countries, Alpha and Beta. In Alpha, real GDP per capita is $6,000. In Beta, real GDP per capita is $9,000
Based on the economic growth model, what would you predict about the growth rates in real GDP per capita across these two countries? A) The growth rate of real GDP per capita in Alpha and Beta will be the same. B) The growth rate of real GDP per capita will be higher in Alpha than it is in Beta. C) The growth rate of real GDP per capita will be lower in Alpha than it is in Beta. D) The economic growth model makes no predictions regarding differences in growth rates of real GDP per capita across the two countries.
The CPI attempts to:
A. balance out the consumption of different types of people in different life stages. B. balance out the consumption of different types of people in different life situations. C. capture an average across a very large group of U.S. consumers. D. All of these statements are true.
If the demand curve for economics textbooks shifts to the left, then the value of the marginal product of labor for economics textbook authors will
a. rise. b. fall. c. remain unchanged. d. rise or fall; either is possible.
Which of the following examples would most likely involve an economist?
a. studying chimpanzees in a natural habitat b. studying chimpanzees in a laboratory c. studying people in a controlled environment d. studying people in a mall