Briefly explain what failure to properly use all capital equipment would do to a production possibilities curve and what that means for the economy.
What will be an ideal response?
Failure to properly utilize all equipment will result in a point being located inside the production possibilities curve, which signifies inefficiency. That means the economy is not producing all that it can.
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Because workers in the United States work fewer hours per week, on average, than they did over 100 years ago,
A) workers in the United States are worse off than they were over 100 years ago. B) GDP is lower than it would be if U.S. workers worked the same workweek they had 100 years ago. C) GDP is higher than it would be if U.S. workers worked the same workweek they had 100 years ago. D) workers in the United States earn less income than they did over 100 years ago.
During 1980 through 2010,
a. the per capita income of high-income industrial countries declined. b. the fastest growing economies in the world were LDCs. c. almost all LDCs grew more rapidly than the high-income industrial economies. d. most of the countries with rapid growth rates during the last two decades were located in South America.
What is it called when the value of a business is determined based on market-derived multiples?
a. income-based approach b. market-based approach c. excess earnings method d. asset accumulation approach e. none of these
In the short run, monopolistically competitive firms will maximize profits by:
A. playing strategic games like oligopolists. B. acting like monopolists. C. acting like perfectly competitive firms. D. None of these statements is true.