Changes in GDP in the long run are determined primarily by
A) monetary policy.
B) fiscal policy.
C) demand.
D) all of the above
E) none of the above
E
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Developing countries have often attempted to establish cartels so as to counter the actual or perceived inexorable downward push on the prices of their exported commodities. OPEC is the best well known of these
How are such cartels expected to help the developing countries? At times importing countries profess support for such schemes. Can you think of any logical basis for such support? How are cartels like monopolies, and how are they different from monopolies. Why is there a presupposition among economists that such schemes are not likely to succeed in the long run?
If you were building a macroeconomic model that explores the effect of the aging population on the needed expenditure for Social Security and Medicare, the endogenous variable(s) would be the
A) aging population. B) needed expenditure on Social Security. C) needed expenditure on Medicare. D) needed expenditure on both Social Security and Medicare.
The theory of land rent holds that
a. capital invested on any plot of land must yield the same return as capital invested on any other plot of land. b. the difference between the costs of producing on any two pieces of land must equal the difference between their rents. c. marginal land earns no rent. d. All of the above are correct.
On the Fourth of July, there is no fireworks display in the small town of Yankeeville, even though it would be efficient for such a display to be produced. Which of the following statements is correct?
a. The lack of a fireworks display in Yankeeville arises because of an externality. b. The lack of a fireworks display in Yankeeville is a case of market failure. c. In deciding not to produce a fireworks display in Yankeeville, private individuals and private firms made decisions that were privately rational but socially inefficient. d. All of the above are correct.