Which elements of GDP were affected by the financial crisis and the lack of available credit?
a. consumption and business investment only
b. consumption and government spending only
c. consumption, business investment and government spending only
d. consumption, business investment, government spending and imports/exports
d
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Explain how affirmative action programs can produce both desirable incentives as well as disincentives when it comes to investing in education
What will be an ideal response?
A college student is thinking about running an ice-cream truck over the summer. What would economists say is the student's main objective?
A. To spend as little on inputs as possible B. To maximize hourly earnings C. To sell as many ice cream cones as possible D. To maximize his profit
Three airlines account for most of the air traffic in and out of a local city. If the three airlines joined together in setting fares and air travel schedules, economists would say that they were acting as: a. monopolistic competitors, as each firm would have to differentiate its airline services from its rivals
b. perfect competitors, as each firm would sell travel services at the same fares as the other airlines. c. a cartel, as the three airlines together would attempt to coordinate policies in the local market to jointly maximize profits. d. none of the above
An increase in which of the following will shift the economy's productivity (GDP/L) curve?
a. the quantity of laborers b. technology c. capital d. output e. consumption