An increase in price causes exit from a constant-cost industry.
Answer the following statement true (T) or false (F)
False
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When interest rates come down,
a. people on average are better off since borrowing is now less expensive. b. people on average are worse off since the income of lenders will now decrease. c. social welfare is left unchanged since what borrowers gain is exactly offset by what lenders lose. d. people on average may or may not be better off, depending on how high the rate was to begin with.
Most people living in Country Y have no more than a ninth-grade education. In contrast, about half of the adult population of Country Z has a college degree. Based on this information, which statement about these two countries is most likely true?
a. Country Z does not have many natural resources available. b. Country Y has a higher rate of economic growth than Country Z. c. There are more people living in Country Y than in Country Z. d. The per capita output of Country Z is higher than that of Country Y.
According to the Keynesian aggregate expenditures model, equilibrium and full employment:
A. always occur at the same income level of real GDP. B. may differ, but there is an automatic mechanism that directs the economy toward full-employment equilibrium. C. could never occur at the same level of real GDP. D. do not necessarily occur at the same level of real GDP.
The traditional view regarding population and growth in DVCs is that:
A. The most important factor affecting population growth in DVCs is per capita consumption of energy B. Unemployment and underemployment are the major sources of population growth in DVCs C. Reduced birthrates must come first in DVCs, and then higher per capita incomes will follow D. Higher per capita incomes must come first in DVCs, and then reduced birth rates will follow