Without trade, the consumption possibilities for two nations are:
a. outside their production possibilities curve.
b. inside their production possibilities curve.
c. along their production possibilities curve.
d. at a point equal to the world production possibilities curve.
c
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The U.S. employment-to-population ratio peaked in 2000 and in 2012 fell to 58 percent, a level not seen since the early 1980s. This fall in the employment-to-population ratio ________ the equilibrium quantity of labor and ________ potential GDP
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
Higher milk prices reduce the demand for milk
a. True b. False Indicate whether the statement is true or false
Economic profit always exceeds accounting profit
a. True b. False Indicate whether the statement is true or false
Governments can impede economic growth for many reasons. Which of the following is not a major reason?
a. High taxes can reduce consumption & investment, and they can reduce the incentive to work. b. Government projects may have relatively low marginal returns. c. Governments may spend more than they earn in tax revenues. d. The lack of government accountability to a bottom line could allow for wasteful spending e. Regulation may damage production incentives.