Equilibrium income is that level of income:
A. toward which the economy gravitates in the short-run.
B. which an economy is capable of producing without generating accelerating inflation.
C. which an economy is capable of producing without generating unemployment.
D. which the economy always produces.
Answer: A
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Which of the following correctly identifies a Malthusian cycle?
A) Increase in GDP would increase GDP per capita above subsistence, which will cause an increase in the size of population which would increase pressure on resources and eventually reduce GDP per capita. B) Increase in GDP would increase GDP per capita above subsistence, which will cause a decrease in the size of population that would reduce pressure on resources and increase GDP per capita further. C) Decrease in GDP would decrease GDP per capita below subsistence, which will cause an increase in the size of population which would increase pressure on resources and eventually reduce GDP per capita. D) Increase in GDP would increase GDP per capita above subsistence, which will cause an increase in the size of population that would increase pressure on resources and that would further increase GDP per capita.
"Government should act to reduce poverty levels."
A) This statement is a normative statement. B) This statement is a positive statement. C) This statement is an example of the fallacy of composition. D) This statement is an example of the post hoc fallacy.
After a $5 million ad campaign, Coca-Cola measured its effectiveness by calculating the cross elasticity of demand between Coke and Pepsi. A successful campaign would be indicated if the cross elasticity went from
A. 0.9 to 0.5. B. 0.9 to 1.5. C. ?0.5 to ?0.2. D. ?0.9 to ?1.5.
Education makes workers aware of the latest production techniques and more receptive to new approaches and methods
a. True b. False Indicate whether the statement is true or false