In the circular-flow diagram, the two types of markets in which households and firms interact are the markets for goods and services and the markets for factors of production
a. True
b. False
Indicate whether the statement is true or false
True
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Which term describes the situation in which a country that can consume more than it can produce as a result of specialization and trade?
a. comparative advantage b. absolute advantage c. gain from trade d. trade advantage
If one producer has the absolute advantage in the production of all goods, then that same producer will have the comparative advantage in the production of all goods as well
a. True b. False Indicate whether the statement is true or false
If real GDP per person were equal to $2,000 in 1900 and grew at a one percent annual rate, what would be the value of real GDP per person 100 years later?
A. $4,000 B. $2,210 C. $20,000 D. $5,410
The average amount of goods and services produced from each hour of a worker's time is called
a. per capita GDP b. per capita GNP c. productivity d. human capital