In some developing countries, labor productivity has remained stagnant or fallen because
a. the capital stock has grown at about the same rate or more slowly than the population
b. the capital stock has grown faster than the population
c. the population has decreased
d. foreign labor has been utilized
e. wages have dropped
A
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What is the difference between nominal and real economic variables? Why do economists tend to concentrate on changes in real magnitudes?
What will be an ideal response?
In the context of the production possibilities curve, opportunity cost is measured in:
a. dollars paid for the goods. b. the quantity of other goods given up. c. the value of the resources used. d. changing technology. e. units of satisfaction.
Nations would gain from trade if a(n) _________ exists
a. absolute advantage b. exchange rate c. specialization d. comparative advantage e. terms of trade
Which of the following is not a result of specialization and trade based on comparative advantage?
A. Increasing total employment B. Higher combined output C. Higher consumption and standard of living D. Consuming combinations of products outside their PPFs