The economy's potential output is
a. the maximum output that could be achieved temporarily during a time of economic boom.
b. the minimum output that could be achieved during a recession.
c. present when 100 percent of the labor force is employed.
d. the maximum sustainable output of the economy given its resources.
D
You might also like to view...
When comparing the distribution of wealth to the distribution of income, it can be noted that
A) the distributions are about the same. B) the measurement of income is much less accurate than the measurement of wealth. C) the measurement of wealth is much less accurate than the measurement of income. D) wealth does not generate income.
Refer to the diagram. At output level Q average fixed cost:
A. is equal to EF.
B. is equal to QE.
C. is measured by both QF and ED.
D. cannot be determined from the information given.
Suppose $1 = 1.5 euros in London and $1 = 1.2 euros in New York. Which of the following would be the right trade for you to make money?
a. You sell 1,000 euros in London and buy euros in New York. b. You sell dollars in New York and buy dollars in London. c. You sell dollars in London and buy dollars in New York. d. You sell euros in London and buy dollars in New York.
A public good can be best de?ned as one which:
A) yields bene?ts only to the individual who decides to buy it. B)has no extemals associated with its production or consumption. C)yields widespread bene?ts which cannot readily be denied to the public at large. D) entails rising costs of production.