Arguing that economic growth will eventually stop because we will run out of natural resources:
A. ignores the power of markets to recognize shortages and induce changes in behavior.
B. must be correct because scarcity exists.
C. will only be correct if growth takes the form of newer, more efficient goods and services.
D. is supported today by the fact that richer countries have fewer natural resources.
Answer: A
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Refer to the scenario above. Using 2013 as the base year, what is the real GDP of the economy in 2012?
A) $50,000 B) $52,500 C) $40,500 D) $49,500
Based on the information in the above table, the value of M1 is
A) $2,100. B) $1,700. C) $3,000. D) $3,100.
Figure 5-4
Refer to . The inefficient equilibrium price and quantity are
a.
$1.90 and 38 units, respectively.
b.
$1.80 and 35 units, respectively.
c.
$1.60 and 42 units, respectively.
d.
$1.35 and 58 units, respectively.
Which of the following is an example of a demand shock?
A. Hurricane Harry knocks out oil drilling platforms in the Gulf of Mexico. B. Consumers become worried about job loss and buy fewer goods and services than expected. C. Floods in the Midwest destroy crops. D. The federal government unexpectedly requires automobile producers to raise fuel efficiency standards.