An increase in living standards is measured by which of the following?
A. The increase in real GDP per capita
B. The increase in real GDP
C. The increase in the number of workers employed
D. The increase in private consumption spending
Answer: A
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Refer to Figure 12-9. At price P3, the firm would
A) lose an amount less than fixed cost. B) lose an amount more than fixed cost. C) break even. D) lose an amount equal to its fixed cost.
What is the difference between "straight-time pay," "commission pay," and "piece-rate pay"?
What will be an ideal response?
The French economist Jean-Baptiste Say transformed the equality of total output and total spending into a law that can be expressed as follows:
a. Unemployment is not possible in the short run. b. Demand and supply are never equal. c. Supply creates its own demand. d. Demand creates its own supply.
The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. Which of the following is true regarding this economic model?
a) Because it does not take into account the role of government, the circular-flow diagram is useless for the purposes of modeling how dollars and resources move throughout an economy. b) Because it does not take into account international trade, the circular-flow diagram is useless for the purposes of modeling how dollars and resources move throughout an economy. c) While simple, the circular-flow diagram can still be useful for the purposes of modeling how dollars and resources move throughout an economy. d) Because, in reality, the economy is very large, the simplicity of the circular-flow diagram makes it useless for the purposes of modeling how dollars and resources move throughout an economy.