Economic growth always results in:
A. An expansion of production possibilities.
B. A change in how goods are distributed.
C. A movement along the production possibilities curve.
D. Higher prices.
Ans: A. An expansion of production possibilities.
You might also like to view...
If a firm has implicit costs as well as explicit costs,
A) accounting profit will be zero. B) net income will always be greater than accounting profit. C) net income will always be less than accounting profit. D) economic profit will be less than accounting profit.
Firms in perfectly competitive industries are unable to control the prices of the products they sell and earn a profit in the long run. Which of the following is one reason for this?
A) Firms from other countries are able to produce similar products at lower costs. B) Firms in perfectly competitive industries can use advertising in the short run to persuade consumers that their products are better than those of other firms. But eventually consumers realize that all of the firms sell virtually identical products. C) Firms in these industries sell identical products. D) Owners of perfectly competitive firms realize that their short-run profits are temporary. Therefore, they either sell their businesses or develop other products that will earn short-run profits.
Which of the following price indices is the best measure of the cost of living of the typical household?
A. GDP deflator B. producer price index C. consumer price index D. household price index
___________ said that a person pursuing his own interest, "frequently promotes that of society more effectively than when he really intends to promote it."
Fill in the blank(s) with the appropriate word(s).