Growth in potential GDP depends on
a. the labor force growth rate, capital stock growth rate, and rate of technical progress.
b. government spending, growth in prices, and labor productivity.
c. cyclical fluctuations and growth in the capital stock.
d. growth in real GDP, nominal GDP, and the population.
a
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If the institutions in an economy change from being inclusive to extractive, then in the economy:
A) the returns to entrepreneurship will increase. B) the opportunity cost of entrepreneurship will decrease. C) the number of entrepreneurs will decrease. D) existing entrepreneurs will earn higher profits.
Explain the relationship between real GDP and potential GDP during the two phases of the business cycle
What will be an ideal response?
Debit cards are safer than credit cards because debit cards generally require a PIN number
a. True b. False Indicate whether the statement is true or false
The National Rifle Association (NRA) lobbies aggressively for the interests of gun owners. For example, the NRA has been instrumental in passing conceal-and-carry laws in several states. Such behavior on the part of NRA is called
A. rent-seeking behavior. B. government failure. C. discrimination. D. consumer loss.