In new growth theory, the source of economic growth is ______.
A. more leisure
B. new and better jobs
C. the persistent want for a higher standard of living
D. an ever increasing growth rate of capital per hour of labor
Answer: C. the persistent want for a higher standard of living
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People hold money as an asset rather than other assets because
A) it holds its value. B) there is no cost to holding money as an asset. C) it grows in value. D) it is highly liquid.
From the price-setter's point of view, the appropriate cost of a good is
A) the inventory cost. B) the marginal cost. C) the sunk cost. D) the wholesale cost.
An increase in Abigail's income decreases her demand for used cars. For her, used cars are
A) a normal good. B) an inferior good. C) a complement to any good. D) a substitute good.
Using Figure 9.1, explain what a firm would do in the short run if the market price of its product were at P2 and it produced Q2 . Is the firm earning an economic profit? An operating profit? Explain
What will be an ideal response?