Economic growth:
A. does not affect living standards at all.
B. has a relatively large effect on living standards over long periods of time.
C. has a relatively small effect on living standards over long periods of time.
D. is the sole determinant of living standards over any time period.
Answer: B
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An organization of employees that has the legal right to bargain with employers about wages and working conditions is called a
A) labor union. B) guild. C) monopsony. D) closed shop.
If an upstream firm and a downstream firm want to establish a contract, all of the following costs can be incurred except which one?
A) search costs B) negotiation costs C) enforcement costs D) monitoring costs
Dan is the owner of a price-taking company that manufactures sporting goods. One particular facility Dan owns produces baseball bats and baseball gloves. His cost function for baseball bats is CB(QB, QG) = 100QB + QB2 + QBQG and the marginal cost is MCB = 100 + 2QB + QG, where QB is the output level for bats and QG is the output level for gloves. Dan's cost function for baseball gloves is CG(QB, QG) = 50QG + QG2 + QGQB, and the marginal cost is MCG = 50 + 2QG + QB. The price of a baseball bat is $240 and the price of a baseball glove is $150. What is Dan's total profit assuming he is producing both products at their profit-maximizing sales quantities?
A. $3,600 B. $4,000 C. $4,400 D. $4,500
A government policy that prevents the price of a good or service from falling below a specified level is called a price floor and usually results in
a. a shortage. b. a surplus. c. a black market. d. fewer producers of the good or service. e. a decrease in demand.