Government spending does not reallocate resources away from private uses when the economy is at full employment
Indicate whether the statement is true or false
F
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The value of output was $100 billion in Northland and $200 billion in Southland. The population of Northland was 50 million and the population of Southland was 30 million. There were 30 million employed workers in Northland and 20 million employed workers in Southland.
A. Southland; higher in Southland B. Southland; the same in both countries C. Northland; higher in Northland D. Northland; the same in both countries
A tax imposed on the part of income that households spend is known as a
a. luxury tax b. flat tax c. consumption tax d. income tax e. value tax
As a firm expands output, in the short run marginal costs will
a. always decline as output expands. b. increase at first but eventually level off and decline. c. eventually increase as the firm experiences diminishing returns to the fixed factors of production. d. initially increase at a decreasing rate but eventually increase at an increasing rate.
Real GDP per person in both Alpha and Omega is equal to $2,000. Over the next 100 years, real GDP per person grows at a 1 percent annual rate in Alpha and at a 2 percent annual rate in Omega. After 100 years, real GDP per person in Alpha is ________ smaller than real GDP per person in Omega.
A. $5,410 B. $11,080 C. $2,000 D. $9,080