A real interest rate that causes the quantity of saving supplied to be equal to the quantity of saving (or investment) demanded is an example of the:
A. principle of comparative advantage.
B. equilibrium principle.
C. principle of increasing opportunity cost.
D. scarcity principle.
Answer: B
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We might predict that Hawaii has a comparative advantage compared to Russia in the production of pineapples because Hawaii has:
A. a climate more suitable for pineapples. B. more advanced farming technology. C. more land available to grow them on. D. less governmental oversight in the pineapple industry.
Why do some say labor standards are "disguised protection"?
a. These standards favor the nations that already have high labor standards and eliminate competition from nations who do not. b. Nations with low labor standards often disguise the fact. c. Raising labor standards is not the issue—it is disguised by the fact that shoddy materials are used in production. d. Often children who should be in school work anyway, and their participation is "disguised" as if an adult held the job.
Which of the following statements concerning the distinction between positive and normative economics is TRUE?
A) Positive statements are concerned with what is, while normative statements are concerned with what someone thinks should be. B) Positive statements are concerned with what people think, while normative statements are concerned with what people do. C) Positive statements are true while normative statements are false. D) Positive statements are concerned with what is while normative statements are concerned with what will be.
Which of the following is included in gross domestic product for an economy in a given year?
A) the value of intermediate goods produced in that year B) the value of used goods sold in that year C) the value of final goods produced in that year D) All of the above would be included in gross domestic product for an economy in a given year.