Economists say that long-run economic growth is almost entirely due to:
A. rising productivity.
B. population growth.
C. a democratically elected government.
D. a balanced budget.
Ans: A. rising productivity.
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In the antebellum period, the largest source of employment was:
a. the agricultural sector. b. the manufacturing sector. c. government (local, state and federal) d. the service industry.
Refer to the accompanying figure. The equilibrium price is ________, and the equilibrium quantity is ________.
A. $4; 6 B. $2; 8 C. $8; 6 D. $6; 4
Assume a perfectly competitive economy would use an assortment of nails that weighs a total of 100 tons. However, the economy is controlled by the government and it sets a ton limit of 100 tons. When production is complete there is only one nail that weighs 100 tons. Which of the following describes what was wrong when government did the planning?
A. Producers did not follow their personal interest in planning production. B. The government miscalculated the correct tonnage that the economy needed. C. The wishes of consumers were not represented in the producer's actions. D. All of these are true.
Investment spending is a leakage from the circular flow model.
Answer the following statement true (T) or false (F)