Goods or services that can be produced only by using unique or rare productive resources tend to have a low elasticity of supply
Indicate whether the statement is true or false
TRUE
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The economic growth model predicts that
A) GDP per capita of poor countries will grow more rapidly than in rich countries. B) GDP per capita of poor countries will never change. C) Governments must centrally direct the economy for growth to occur. D) GDP per capita of rich countries will grow more rapidly than in poor countries.
The fact that an economy always returns to the natural rate level of output is known as
A) the excess demand hypothesis. B) the price-adjustment mechanism. C) the self-correcting mechanism. D) the natural rate of unemployment.
The consumption possibilities frontier shows a nation's possible combinations of labor and capital resources that are used for specializing in the production of the comparative advantage good
Indicate whether the statement is true or false
Refer to the information provided in Table 3.2 below to answer the question(s) that follow.Table 3.2Price per CheeseburgerQuantity Demanded (Cheeseburgers per Month)Quantity Supplied (Cheeseburgers per Month)$51,500 500 61,200 700 7 900 900 8 6001,100 9 3001,300Refer to Table 3.2. If the price per cheeseburger is $5, the price will
A. decrease because there is an excess demand in the market. B. increase because there is an excess demand in the market. C. decrease because there is an excess supply in the market. D. remain constant because the market is in equilibrium.