If external benefits occur when a good is consumed, then the government should:
a) Enforce antitrust laws against producers of the good.
b) Make transfer payments to those who incur the externalities.
c) Tax the producers of the good.
d) Subsidize the consumption or production of the good.
Answer: d) Subsidize the consumption or production of the good.
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Belgium's real GDP per person is $33,000 and Austria's is $34,700. The population growth rate in Belgium is 0.13 percent and the growth rate of real GDP is 3.0 percent
The population growth rate in Austria is 0.08 percent and the growth rate of real GDP is 3.3 percent. If these growth rates continue, how many years will it take for Belgium's real GDP per person to equal Austria's real GDP per person? A) Belgium's standard of living will never equal Austria's. B) just over 23 years C) just over 24 years D) just over 21 years E) over 230 years
The major economic problem is to:
a. provide for full employment. b. eliminate scarcity. c. increase the standard of living. d. allocate limited resources among unlimited uses. e. increase leisure.
Refer to Exhibit 6-1. Prices rose by __________ percent from Year 4 to Year 5.
a. 3.90 b. 3.75 c. 4.30 d. 5.90
If the change in business inventories is zero, then final sales are
A. equal to GDP. B. greater than GDP. C. zero. D. less than GDP.