Which of the following statements suggests that a rise in GDP actually understates the rise in the standard of living?
a. A much wider variety of basic products, such as food and clothing, is available today than several decades ago.
b. Crime rates may rise as the GDP of a society increases
c. Crime rates may rise as the GDP of a society increases.
d. Income inequality may increase with increasing GDP.
a
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What is ‘government failure'? How would you draw the line between public and private activity?
What will be an ideal response?
During the colonial period, this region specialized in grain production, primarily using family farms:
a. the Middle colonies b. the Southern colonies c. the New England colonies d. Newfoundland
If a consumer purchases only two goods, X and Y, and if (MUx / Px) = (MUy / Py), then the consumer cannot reallocate her expenditures on X and Y to increase her utility unless she has more money to spend
a. True b. False Indicate whether the statement is true or false
When Mexico suffered from capital flight in 1994, Mexico's net capital outflow
a. and net exports decreased. b. and net exports increased. c. increased while net exports decreased. d. decreased while net exports increased.