Answer the following statements true (T) or false (F)
1) Increases in household and business spending are a demand factor in economic growth.
2) To fully realize economic growth through the efficiency factor, an economy must increase its
stock of capital goods and improve its technology.
3) If an economy is currently producing on its production possibilities curve, a rightward shift of
the curve is a necessary but not sufficient condition for economic growth.
4) Economic growth can be shown as a movement from a point on one production possibilities
curve to a point on a curve located farther from the origin.
1) T
2) F
3) T
4) T
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In a "pure exchange" market:
a. resources are owned only by the government. b. resources are owned by few people. c. people trade money for goods that are produced in the domestic economy. d. there is no production and people trade money for goods that already exist.
Which economic concept is the closest to the saying "There's no free lunch"?
a. Specialization b. Unlimited wants c. Underutilization of resources d. Opportunity costs e. Overutilization of resources
Elizabeth Rodriguez is a veterinarian at the Cincinnati Zoo. She produces a(n)
a. nonexcludable good b. transfer c. public good d. merit good e. entitlement
A policy that raised the natural rate of unemployment would shift
a. both the short-run and the long-run Phillips curves to the right. b. the short-run Phillips curve right but leave the long-run Phillips curve unchanged. c. the long-run Phillips curve right but leave the short-run Phillips curve unchanged. d. neither the long-run Phillips curve nor the short-run Phillips curve right.