The most important way in which inefficiency occurs is
a. producing more military goods instead of civilian goods.
b. limiting economic growth by limiting capital spending.
c. unemployment of labor and other resources.
d. producing outside the production possibilities frontier.
e. All of the above are correct.
c
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In the graph showing aggregate demand and aggregate supply after a negative supply shock, we can see that at Point B, ______ at Point A.
a. RGDP is higher than
b. RGDP is lower than
c. price levels are the same as
d. price levels are lower than
Which of the following is a benefit of cleaner air and water that is difficult to quantify?
a. Increased property values b. Gains in the tourism industry c. Benefits to farming and fishing d. Better health for someone with asthma
Given the strict quantity theory of money, if the quantity of money doubled, prices would
a. fall by half. b. double. c. remain constant. d. increase somewhat but less than double.
An example of a capability considered in the capabilities approach would be:
A. living free of the fear of violence B. to have the ability to purchase an item you really want. C. earning a livable wage. D. being able to afford a nice home.