The knowledge and skills that make workers productive are referred to by economists as:
A. human capital.
B. simultaneous consumption.
C. increasing returns.
D. resource allocation.
Answer: A
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Which of the following is NOT a common characteristic of a developing country?
A) extensive direct government control of the economy B) history of low inflation C) many weak credit institutions D) "pegged" exchange rates E) Agricultural commodities make up a large share of its exports.
The level of capital per person would increase if
A) the average saving rate were higher. B) the output-to-capital ratio increased. C) the depreciation rate increased. D) Both A and B.
If the economy is operating at a 7 percent unemployment rate we are operating
A. inside the production possibilities curve. B. on the production possibilities curve. C. outside the production possibilities curve.
A reason why the CPI overstates the cost of living is it
A. makes no attempt to control for quality improvements, except in consumer goods. B. makes no attempt to update the market basket. C. only measures the effects of inflation on the poor. D. makes no attempt to ascertain what average people buy.