As a result of a shortage,
A. Consumers increase demand for the product.
B. Producers increase output and raise price.
C. Government purchases decrease.
D. Producers reduce supply.
Answer: B
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The above table shows the distribution of wealth and income in Miseria. The Lorenz curve for wealth would
A) intersect the horizontal axis at 100 percent. B) bow outward more to the right than does the Lorenz curve for income. C) lie parallel to the line of equality. D) become flatter as one moves from left to right.
As the quantity of capital increases, the marginal product of capital
A) does not change. B) increases. C) decreases. D) may either increase or decrease.
Neoclassical growth theory emphasized how __________ contribute to growth
A) the resources labor and capital B) technological changes C) government policies D) factors limiting population growth
Economists generally feel that a lack of natural resources ______ economic growth.
a. has little effect on b. is an obstacle to c. will prevent sustained d. aids a nation’s