State two reasons why dire predictions of falling standards of living and a decline in resource availability proved to be wrong
What will be an ideal response?
Many individuals and groups have made dire predictions about the decline in living standards and explosive population growth that will outstrip the capacity of the economy to supply resources, but the predictions have been wrong. The reasons are twofold. The population growth rate has fallen substantially as living standards have risen around the world. Also, the supply of productive resources has been increasing faster than the demand for resources, thus driving down the price of resources.
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The unemployment rate is calculated as
A) [(labor force) ÷ (population)] × 100. B) [(unemployment) ÷ (population)] × 100. C) [(unemployment) ÷ (labor force)] × 100. D) [(labor force) ÷ (unemployment)] × 100.
Suppose that a new bond rating service is established that specializes in rating municipal bonds that had not previously been rated. The likely result would be
A) a shift to the left in the demand curve for municipal bonds. B) a shift to the left in the supply curve for municipal bonds. C) an increase in the equilibrium interest rate. D) a decrease in the equilibrium interest rate.
A requirement for development is
a. an unreliable system of financial institutions b. a lack of saving by households and firms c. low confidence in domestic currency d. low and predictable inflation that encourages saving e. None of the answers is correct
An area in which the United States has had a sizable surplus in its balance of payments is sales of ____ to foreigners
a. goods b. energy c. assets d. automobiles