When real GDP grows more slowly than potential GDP,
a. nominal GDP rises.
b. the unemployment rate falls.
c. labor productivity falls.
d. the unemployment rate rises.
d
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What is the opportunity cost of 1 tractor in terms of automobiles for the U.S. and Japan, respectively?
A. 0.5 automobiles and 2 automobiles
B. 0.5 automobiles and 1 automobile
C. 2 automobiles and 1 automobile
D. 2 automobile and .25 automobiles
The underlying psychological foundation of individual choice and economic reasoning is:
A. focal point equilibrium. B. bounded rationality. C. generosity. D. self-interest.
To increase the sale of goods and services, companies must regard their own countries as their market.
Indicate whether the statement is true or false.
Which countries joined the European Union (EU) in 2007?
A. The Czech Republic and Slovakia B. Macedonia and Montenegro C. Portugal and Spain D. Bulgaria and Romania