Despite some problems with equating GDP with economic well-being, higher real GDP per person does imply greater economic well-being because it tends to be positively associated with:
A. better education, health and life expectancy.
B. poverty, depletion of nonrenewable resources, and congestion.
C. crime, pollution, and economic inequality.
D. unemployment, availability of goods and services, and better education.
Answer: A
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Wealth decreases as a result of ________ and/or ________.
A. positive saving; capital gains B. negative saving (borrowing); capital gains C. negative saving (borrowing); capital losses D. negative saving (borrowing); crowding out
According to the classical model, total employment will increase when
a. the birth rate increases b. the government creates more jobs c. the labor force increases d. individuals receive more education e. there is a recession
After the American Civil War, many prominent Southerners lamented the fact that the South "overproduced" cotton and "underproduced" food. In fact, the South did import a very large percentage of its food. Nevertheless, rather than reduce cotton production and grow more food, Southern farmers did the opposite because
a. they were irrational and distraught over the loss of slavery. b. the South had a comparative advantage in cotton production. c. the North had a comparative advantage in cotton production. d. corn was absolutely cheaper to produce in the North.
In describing the economic setting in the real goods market, which of the following economic measures is the most helpful?
a. Current unemployment rate and labor force participation rate b. Annual inflation rate during the past year c. Current real exchange rate d. Percentage change in nominal GDP during the past year e. Current nominal exchange rate