"There is a direct relationship between economic growth rates and the wealth of a nation." Do you agree or disagree? Why?
What will be an ideal response?
Disagree. Wealthier nations often have smaller growth rates than poorer nations. Part of the reason is that a two percent growth rate for a rich nation means a lot more actual growth of the level of per capita real Gross Domestic Product (GDP) than it does for a poor nation.
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
Robert Lucas argues that there are ________ returns to human capital, and these productivity increases are not completely captured by individuals as they decide how much education to purchase
As a result, the market produces ________ education and training. A) increasing; too little B) increasing; too much C) decreasing; too little D) decreasing; too much
How does an increase in the real exchange rate affect exports and imports?
A) Exports increase; imports decrease. B) Exports decrease; imports increase. C) Exports increase; imports change ambiguously. D) Exports change ambiguously; imports decrease. E) Exports increase; imports are constant.
If a firm decreases output when MR > MC, then:
a. profit will equal zero. b. profit will increase. c. profit will decrease. d. profit will remain the same. e. the firm is minimizing losses.