If a country pursues its comparative advantage:
A. Prices will rise throughout the world.
B. Total world population will increase.
C. Market power will rise throughout the world.
D. Total world output will increase.
D. Total world output will increase.
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Of the four major market structures, perfect competition is the best at achieving economic efficiency
a. True b. False
An example of a good whose production is counted in this year's GDP is
a. a share of corporate stock b. a used book c. an acre of farm land d. a used car e. a new shirt
Even though monetary policy is neutral in the short run, it may have profound real effects in the long run
a. True b. False Indicate whether the statement is true or false
Coordination problems have led to the failure of command systems. Which of the following best exemplifies this problem?
A. Command economies try to minimize the use of capital goods, making production less efficient. B. Managers had no incentive to address market surpluses or shortages, as long as they met production goals. C. Workers were not motivated to work hard because of a lack of consumer goods to purchase. D. The complexity of production processes made it difficult to assure that all necessary inputs were provided at the right time and in the right amount.