The basic difference between consumer goods and capital goods is that:
A. consumer goods are produced in the private sector and capital goods are produced in the public sector.
B. an economy that commits a relatively large proportion of its resources to capital goods must accept a lower growth rate.
C. the production of capital goods is not subject to the law of increasing opportunity costs.
D. consumer goods satisfy wants directly while capital goods satisfy wants indirectly.
Answer: D
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Alex works in his own home as a homemaker and full-time caretaker of his children. Officially, he is
A. not in the labor force. B. in the labor force. C. employed. D. unemployed.
The change in quantity demanded derived from a change in price is
a. the movement along a demand curve b. the movement along a supply curve c. a shift in the demand curve d. a shift in the supply curve
A German who exchanges euros for dollars in a U.S. airport is
a. contributing to U.S. exports b. lending dollars to Germans c. participating in the foreign exchange market d. engaging in speculative activities e. engaging in illegal activities
Which of the following is most important for the achievement of higher income levels and living standards?
A) production of additional goods and services that people value highly relative to the cost of their production B) an increase in total employment C) restriction of imports that expand employment in the protected industries D) increases in government spending that create jobs