A spontaneous order emerges from individual decisions that cause something to "work" without anyone planning for it to "work".
Answer the following statement true (T) or false (F)
True
Rationale: A spontaneous order is an order that is unplanned but simply arises from individuals doing the best they can given their circumstances. One example of this is the provision of complex goods and services in the market where thousands of individuals participate in the creation of something without most of them being aware that this is what they are doing.
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Potential GDP refers to
A) the extent to which real GDP is above or below nominal GDP. B) the difference between the highest level of real GDP per quarter and the lowest level of real GDP per quarter within any given year. C) the level of GDP attained when all firms are producing at capacity. D) the level of GDP attained by the country with the highest growth in real GDP in a given year.
Explain the case for land reform in Latin America. Are there any potential negative effects? What steps could be taken to address these effects?
What will be an ideal response?
A profit-maximizing firm will hire an additional unit of a resource as long as the
a. marginal product of the resource is greater than the marginal resource cost b. marginal product of the resource is less than the marginal resource cost c. marginal revenue product of the resource is greater than the marginal resource cost d. marginal revenue product of the resource is less than the marginal resource cost e. price of the resource is less than the marginal resource cost
When there are sustained increases in real GDP over time, we say that the economy is undergoing:
A. economic stagnation. B. a recession. C. economic growth. D. massive changes in productive capacity.