A country's actual output ________ its potential output.
A. can only temporarily exceed
B. is always be approximately equal to
C. can never fall below
D. can never exceed
Answer: A
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An increase in government spending
A) increases consumption and output. B) increases consumption, decreases output. C) decreases consumption, increases output. D) decreases consumption and output.
Under British rule, colonists were considered British subjects and had most of the same rights of British citizens
Indicate whether the statement is true or false
The term opportunity cost refers to the
A. value of what is gained when a choice is made. B. difference between the value of what is gained and the value of what is forgone when a choice is made. C. value of what is forgone when a choice is made. D. direct costs involved in making a choice.
Suppose that you build a high-speed, magnetically powered transportation system from New York to Los Angeles, and you are the only firm providing this service. High fixed costs resulting from the enormous quantity of capital used in this system enable decreasing average cost for any conceivable level of demand. Your monopoly would result from:
a. increasing returns to scale. b. technological superiority. c. control of a scarce resource or input. d. government-set barriers.