When new technology eliminates existing jobs but simultaneously creates jobs making new and better products elsewhere in the economy, economists refer to this situation as
A) the classical dichotomy.
B) technological balance.
C) creative destruction.
D) sectoral shifts.
C
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"Monopolists do not worry about efficient production and minimizing costs since they can just pass along any increase in costs to their consumers." This statement is
a. false; price increases will mean fewer sales, which may lower profits. b. true; this is the primary reason why economists believe that monopolies result in economic inefficiency. c. false; the monopolist is a price taker. d. true; consumers in a monopoly market have no substitutes to turn to when the monopolist raises prices.
If domestic saving is greater than domestic investment, then a country will have a ________ and positive net capital ________.
A. trade deficit; inflows B. trade surplus; outflows C. trade deficit; outflows D. trade surplus; inflows
When the government levies a $100 million tax on people's income and puts the $100 million back into the economy in the form of a spending program, such as new interstate highway construction, the:
A. tax, then, generates a $100 million decline in real GDP. B. level of real GDP expands by $100 million. C. effect on real GDP is uncertain. D. tax multiplier overpowers the income multiplier, triggering a rollback in real GDP.
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