In a small Asian country, it is estimated that changing the level of capital from $8 million to $12 million will increase real GDP from $4 million to $6 million
What level of GDP would you expect the economy to be able to reach if spending on capital continued to rise to $16 million, assuming no technological change and no change in the hours of work?
A) GDP would increase further by exactly $8 million.
B) GDP would increase further by exactly $2 million.
C) GDP would increase further, but by less than $2 million.
D) GDP would increase further by more than $2 million
C
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When demand increases in a perfectly competitive market, in the short run ________, and in the long run ________.
A. quantity supplied increases; supply decreases B. quantity supplied increases; supply increases C. quantity supplied decreases; supply increases D. quantity supplied decreases; supply decreases
John only works in the summer between semesters. What type of unemployment is he experiencing?
a. Frictional b. Seasonal c. Structural d. Cyclical
Voluntary trade promotes economic progress because
A) it discourages trade based on the comparative advantage of suppliers. B) This is a trick question; voluntary exchange does not promote economic progress. C) it moves goods, services and resources from people who value them less to individuals who value them more. D) it discourages businesses from seeking lower per-unit costs through adoption of mass production methods.
If the poverty line for a family of 4 is $16,000, then the poverty line for a family of two is likely to be
A. less than $8,000. B. greater than $16,000. C. less than $16,000 but greater than $8,000. D. exactly $8,000.