Which of the following statements is likely to be made by someone who believes in the new growth theory?
A) Population growth will limit long-run gains in real GDP per person.
B) Competition will encourage discoveries of new ideas leading to greater economic growth.
C) Choices made by human capital are likely to be inefficient.
D) Economic growth will eventually slow.
E) Although technological changes increase real GDP, these changes are random and unexplainable.
B
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In the United States, part-time workers are
A) less numerous than full-time workers. B) considered discouraged workers. C) about as numerous as full-time workers. D) counted as unemployed in all measures of the unemployment rate. E) more numerous than full-time workers.
One way tariffs differ from quotas is that
A) tariffs produce revenues for the importing country's government. B) quotas produce revenues for the exporting country's government. C) tariffs produce no revenues but set limits on the imported items. D) tariffs are applied only on raw materials.
What does GDP measure to avoid double-counting?
a. final goods and services b. intermediate goods and services c. net exports d. all sales of goods and services
Refer to the labor market diagram where D is the labor demand curve, S is the labor supply curve, and MRC is the marginal resource (labor) cost curve. If an inclusive union was formed and was able to get the monopsonist to agree to a $7 wage rate, then the monopsonist would:
A. reduce employment from 5 to 3 workers.
B. reduce employment from 5 to 2 workers.
C. increase employment from 3 to 5 workers.
D. not alter its level of employment.