Answer the following statements true (T) or false (F)
1. A shift outward in the production possibilities curve is the direct result of improvements in the
efficiency factor of economic growth.
2. Total output for an economy is basically equal to total work-hours multiplied by labor productivity.
3. If an economy has 800,000 work-hours employed, and its labor productivity is $16/hour, then
its real GDP must be $50,000.
4. Since the 1950's, the U.S. average annual rate of growth of real GDP was higher than the
average annual growth of real GDP per capita.
5. Increased labor productivity has been less important as a source of growth than the increased
labor inputs in the U.S. economy since the 1950's.
1. FALSE
2. TRUE
3. FALSE
4. TRUE
5. FALSE
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A firm's managers need information on the firm's revenue and costs as well as information on the value of a firm's assets and the amount of the firm's debts to answer three basic questions
Which of the following is not one of those three basic questions? A) how to produce it? B) where to produce? C) what to produce? D) what price to charge?
What is the measure of the income earned by owners of resources used in making final goods and services?
a. personal income b. national income c. retained earnings d. gross domestic income
Define and illustrate “noncompeting groups” and “compensating differences.”
What will be an ideal response?
The textbook uses as its precise definition of hyperinflation an inflation rate
A) below zero. B) of less than one percent per year. C) of more than one hundred percent per year. D) of more than one thousand percent per year. E) of more than fifty percent per month.