GDP is a complete measure of economic welfare.

a. true
b. false


Answer: b. false

Economics

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Suppose that the government is trying to decide between allocating its resources to build more dams or to build more freeways

In terms of forgone dams, as more freeways are constructed, the marginal benefit of additional freeways ________ and the marginal cost of additional freeways ________. A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases

Economics

A merger between two firms with unrelated products is a

A. vertical merger. B. conglomerate merger. C. horizontal merger. D. monopoly merger.

Economics

In the late 1990s, Thailand, Malaysia, and Indonesia all experienced sharp declines in the value of their currencies; this resulted in economic instability and crisis. The collapse in the values of their currencies undermined their development by:

A. decreasing political instability. B. decreasing population growth. C. increasing corruption. D. reducing investment.

Economics

In Figure 8.5, if equilibrium real output is Q1 and full-employment real output is Q2, an appropriate monetarist policy lever would be to increase

A. AS by increasing the money supply. B. AD by reducing government regulations. C. AD by reducing interest rates. D. AD by decreasing income taxes.

Economics