Over long periods of time, the growth rates of actual and potential GDP have been
A. diverging.
B. similar.
C. declining together.
D. usually far apart.
Answer: B
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At McDonald's, economies of scale at the firm level
a. can be traced to factors such as the use of centralized training and common menus for all restaurants b. exist only in the short run c. occur above the firm's minimum efficient scale d. can be traced to the diminishing marginal productivity of a variable resource, such as labor e. occur over the range of output for which the firm's total cost curve is upward sloping
The Asian Development Bank has been investing in education and training programs in the developing economies of Asia over the last five years. As a result of this investment, economists who adhere to the human capital view of education would predict
a. rising wages as labor productivity is enhanced. b. falling wages as the labor market is saturated with too many educated workers. c. the marginal productivity of capital would not be affected. d. the marginal productivity of labor would not be affected.
Government printing of money to finance government spending is called
A) irresponsible. B) an open-market purchase. C) sterilization. D) seigniorage.
Which of the following will most likely happen when a person's income increases, other things equal?
a. The budget line will shift outward b. The budget line will become steeper c. The budget line will become flatter d. The indifference curves will shift outward e. The indifference curves will shift downward