Suppose that real GDP increases by 5% while the population of a country increases by 7%. Then:
A.
Output per person necessarily increases
B.
Output per person necessarily decreases
C.
Output per person necessarily remains unchanged
D.
There is not enough information to determine what happens to output per person
B.
Output per person necessarily decreases
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If the government of a developing country is having difficulty selling bonds to build an irrigation system, it could go to the
A) United Nations International Bank. B) World Bank. C) International Monetary Organization. D) Federal Reserve Bank.
Moving along the production possibilities frontier itself illustrates
A) the existence of tradeoffs. B) the existence of unemployment of some factors of production. C) the benefits of free lunches. D) how free lunches can be exploited through trade. E) how tradeoffs need not occur if the economy is efficient.
What are the pros and cons of using cold turkey disinflation compared to a policy of gradualism?
What will be an ideal response?
Market clearing prices in a market system act as
A) a signaling device. B) a direct measure of resource costs. C) a way for producers to advertise. D) a legally determined rationing device.