Answer the following statement(s) true (T) or false (F)
1. Government policies play only a limited role in stabilizing the economy.
2. All else being the same, an increase in population would lower the standard of living because more people would be sharing the same output of goods and services.
3. Economic growth rates provide a good measure of the distribution of output and income.
4. Productivity growth rates are higher in countries that provide incentives for innovation and investment in research and development.
1. False
2. True
3. False
4. True
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What effect will an increased demand for housing in the suburbs of a major city have on the cost of vegetable farming in the suburbs?
A) No effect, since one cannot grow vegetables on land on which housing has been constructed. B) The cost will decline because only very fertile land will now be used for growing vegetables. C) The cost will rise because it will become more expensive to grow vegetables. D) The cost won't change, because there has been no change in physical conditions. E) We cannot predict unless we know what has happened to the demand for vegetables.
Refer to Figure 2-11. Which country has a comparative advantage in the production of cashews?
A) Pakistan B) Indonesia C) They have equal productive abilities. D) neither country
If the number of employees who quit, are fired, or retire increases while the hiring of new employees declines, this indicates that the
A) labor supply curve is shifting to the right. B) labor demand curve is shifting to the left. C) labor demand curve is shifting to the right. D) labor supply curve and labor demand curve are both shifting to the right.
A horizontal merger can lead to all of the following except which one?
A) a monopoly B) a decrease in the total surplus C) a perfectly competitive market D) a deadweight loss