Suppose that in year 1 every adult in the country works 40 hours a week and GDP is $6.7 trillion. In year 2 every adult in the country works 45 hours a week and GDP is $7.5 trillion. Which of the following statements is true?
A) Per-capita GDP is necessarily higher in year 2 than year 1.
B) People are "better off" in year 2 than in year 1 because there are more goods and services in year 2 than year 1.
C) Government transfer payments were higher in year 2 than in year 1.
D) a and b
E) none of the above
E
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When exchange rates are ________, we say that the country's exchange rate is fixed
A) determined in the market B) relatively stable C) set by a country's central bank D) determined by supply and demand
As economic development progresses, eventually birth rates _____.
Fill in the blank(s) with the appropriate word(s).
Refer to the information provided in Figure 2.1 below for the economy of Macroland to answer the question(s) that follow.
Figure 2.1Refer to Figure 2.1. Macroland is currently operating at Point A. The best explanation for this is that
A. the economy has very few resources. B. the economy's resources are being used inefficiently. C. the economy operates as an efficient market. D. the economy has very poor technology.
If increases in government regulations have increased the cost of producing gasoline-powered lawnmowers, you accurately predict that in the market for gasoline-powered lawnmowers, there will be a(n)
A. decrease in the supply of gasoline-powered lawnmowers, an increase in the price, and a decrease in the quantity demanded. B. decrease in the quantity supplied of gasoline-powered lawnmowers, a reduction in the price, and an increase in the quantity demanded. C. decrease in the supply of gasoline-powered lawnmowers, an increase in the price, and a decrease in the demand. D. increase in the supply of gasoline-powered lawnmowers, an increase in the price, and a decrease in the demand.