When resources are allocated politically, rent-seeking will
a. channel resources toward government programs that generate large benefits relative to costs.
b. reduce GDP because it results in the wasteful use of resources.
c. lead to wasteful, rather than productive, use of resources.
d. improve the efficiency of resource use.
C
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Total income in a country in 2012 is $780 billion. Total expenditure in the country
A) cannot be determined. B) is greater than $780 billion. C) is $780 billion. D) is less than $780 billion. E) is either less than or equal to $780 billion.
If a country begins to import a good,
a. it has a comparative advantage in producing that good b. it has a comparative advantage in consuming that good c. domestic consumers are made better off d. domestic producers are made better off e. both domestic consumers and domestic producers are harmed
Ceteris paribus, if the average price level falls, then the _____ effect will result in _____ in the purchases of goods and services.
A. Real balances; an increase B. Foreign trade; a decrease C. Interest rate; a decrease D. Cost; an increase
Two factories make wooden chairs. If the workers in factory X make each chair from start to finish and the workers in factory Y divide labor, one would assume
A. the workers in factory Y have more job satisfaction. B. factory X can take advantage of division of labor and produce more efficiently. C. factory Y can take advantage of division of labor and produce more efficiently. D. the chairs in factory X are of higher quality.