(Last Word) It is expected that by 2050, most nations will have decreasing populations. With the likely decline in the labor force and number of hours of work in the economy, what must occur for real GDP to continue to rise?
A. Increasing amounts of natural resources must be brought into production.
B. Labor productivity must grow faster than the drop in work hours.
C. Consumption spending must grow faster than the drop in work hours.
D. Government spending and tax policy must be altered to stimulate sufficient demand.
B. Labor productivity must grow faster than the drop in work hours.
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Which one of the following colonial groups actually benefited from the Navigation Acts?
a. Southern tobacco farmers b. New England shipbuilders c. colonists who bought goods imported from non-imperial sources d. No colonial group benefited from the Navigation Acts.
In general, elasticities measure
A) the change in quantity demanded when a product attribute changes. B) the change in consumer spending when income changes. C) the change in an attribute for a percentage change in price. D) the percentage change in the quantity demanded resulting from a fixed percentage change in some attribute.
Sebastian decides to open a tree farm. When deciding to open his own business, he turned down two separate job offers of $25,000 and $30,000 and withdrew $20,000 from his savings. Sebastian's savings account paid 3 percent interest. He also borrowed $20,000 from his brother, whom he pays 2 percent interest per year. He spent $15,000 to purchase supplies and earned $50,000 in revenue during his
first year. What are Sebastian's implicit costs from running his own business? a. $30,600 b. $55,600 c. $50,000 d. $75,600
Which of the following statements is false?
A. Diversification can reduce risk but only by reducing the expected return. B. Diversification reduces idiosyncratic risk. C. Diversification can reduce risk. D. Diversification allocates savings across more than one asset.