If your professor decided to give all of his students the highest grade in the class, would that affect your classmates' incentives to study?
What will be an ideal response?
If every student were given the same grade irrespective of how he or she did on an exam, students' incentive to study. Even without studying, a student would be ‘guaranteed' a higher grade than he would have received otherwise. Eventually, one can expect students in the class to stop studying altogether.
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The quantity of real GDP produced by one hour of labor is defined as
A) the advance in technology. B) economic growth. C) the growth rate of technology. D) real GDP per person. E) labor productivity.
Mercantilism is another name given to the version of capitalism that has emerged in the globalized world of the 21st century
Indicate whether the statement is true or false
The goal of expansionary fiscal policy with respect to output is to:
A. increase spending and shift aggregate demand to the right in an effort to reach full employment output. B. increase spending and aggregate demand to get back to an output level the government is comfortable with. C. decrease government spending in an attempt to get the private economy back on track. D. increase spending and shift aggregate demand to the left in an effort to reach full employment output.
If Honda (a Japan-based firm) produces a car in Ohio and exports it to Japan, in which country's GDP will the car be counted?
a. Japan's, because Honda is a Japanese company b. Japan's because that is where the car is purchased c. The GDP of the United States because that is where it was built d. Both Japan and the United States