If average labor productivity increases, real GDP per person:
A. increases.
B. may increase or decrease depending on the change in the share of population employed.
C. remains constant.
D. decreases.
Answer: B
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Refer to Table 2-14. Ireland has a comparative advantage in the production of
A) both products. B) motorcycles. C) guitars. D) neither product.
Governments may intervene in private markets through
A) rationing by political power. B) price floors. C) price ceilings. D) all of the above.
Suppose that antitrust laws were successful in moving the allocation of resources in the computer software industry closer to the social optimum. This situation would illustrate which of the following Ten Principles of Economics?
a. Trade can make everyone better off. b. The cost of something is what you give up to get it. c. Governments can sometimes improve market outcomes. d. A country's standard of living depends on its ability to produce goods and services.
Normative economics involves
A. a statement of "what should be." B. a statement of fact. C. a statement of "what is." D. a statement that is purely descriptive.