Suppose that real GDP grew more in Country A than in Country B last year
a. Country A must have a higher standard of living than country B.
b. Country A's productivity must have grown faster than country B's.
c. Both of the above are correct.
d. None of the above are correct.
d
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Given the quantity theory of money demand, a doubling of the money supply will lead to a
A) halving of the velocity of money. B) doubling of the level of real output. C) doubling of the level of nominal output. D) rise in the level of interest rates.
If the price elasticity of demand for a good is less than one in absolute terms, we say consumers of this good
A) are not very sensitive to price. B) are not very sensitive to the quantity they demand. C) are very sensitive to price. D) are elastic.
When economists speak of the short run, they are referring to _____
a. a specific period of time, usually less than one year b. a specific period of time, more than one year, but less than two years c. a specific period of time just long enough that the quantities of all resources can be varied d. a period of time short enough that the quantities of at least one of the resources cannot be varied e. a period of time short enough that none of the quantities of the resources can be varied
Marginal resource cost refers to the:
A. increase in total revenue resulting from the sale of the extra output of one more worker. B. price at which additional units of a resource can be hired in an imperfectly competitive resource market. C. increase in total cost resulting from the production of one more unit of output. D. amount by which a firm's total resource cost increases as the result of hiring one more unit of the resource.