Which of the following is an example of a nation with a traditional economy?
a. the national government has mandated that 100,000,000 tons of butter be produced each year
b. techniques used for growing wheat have been unchanged for centuries
c. due to high fuel prices, many fuel-efficient cars are being produced
d. economic authorities have ordered industry to produce tanks and heavy weaponry instead of food
Ans: b. techniques used for growing wheat have been unchanged for centuries
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Real GDP per person in Richland is $20,000, while real GDP per person in Poorland is $10,000. However, Richland's real GDP per person is growing at 1 percent per year, and Poorland's real GDP per person is growing at 3 percent per year. After 50 years, real GDP per person in Richland minus real GDP in Poorland is:
A. positive and greater than $10,000. B. negative. C. zero. D. positive but less than $10,000.
When there is excess aggregate demand in the economy,
A. Full-employment output is less than equilibrium output. B. The GDP gap is positive. C. Desired fiscal restraint equals the AD excess divided by the multiplier. D. Full-employment output is higher than equilibrium output.
Your bike is worth $100 and if you park it outside at school there is a 25% chance that it will be stolen. Your utility function for money is 
. Assume throughout that the bike value and money are interchangeable since you could sell the bike instantly at its value if necessary. What is the maximum you will pay for the bike check-in now?
What will be an ideal response?
The demand schedule or curve confronted by the individual, purely competitive firm is:
A. relatively elastic, that is, the elasticity coefficient is greater than unity. B. perfectly elastic. C. relatively inelastic, that is, the elasticity coefficient is less than unity. D. perfectly inelastic.