Answer the following statements true (T) or false (F)
1. There tends to be a high positive correlation between the rate of productivity growth and the rate of economic growth.
2. There tends to be a positive correlation between real wages of workers and the productivity of
labor in the economy.
3.Global competition has tended to slow down the rate of productivity growth in the United States.
4. Simultaneous consumption and network effects are sources of increasing returns and economies of scale that promote productivity growth.
1. TRUE
2. TRUE
3. FALSE
4. TRUE
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Refer to the figure above. If the capital stock is fixed at $300, what is the GDP in the economy?
A) $7,000 B) $6,000 C) $5,000 D) $4,000
Which of the following is a main characteristic of exchanges in the market system?
A) Decisions to trade are based on individuals' self interest. B) Exchanges are highly regulated by the government. C) Sellers hire economists to determine the market clearing price. D) Exchanges are part of the legislative imperative.
Economic consequences of Tea Act (1773) included a/an __________ in the price of tea in the colonies and a/an ___________ in the revenues of colonial tea wholesalers
a. increase; increase b. increase; decrease c. decrease; increase d. decrease; decrease
When Hurricane Katrina hit the Gulf Coast of the United States in 2005 it destroyed 5,000,000 acres of timber. Given that lumber is timber that has been sawed or split into planks and boards, explain in terms of supply and/or demand how the hurricane
impacted each of the following markets (be sure to note the expected resulting impact on equilibrium price and quantity): a. Domestic lumber b. Imported lumber c. New home construction