In the short-run, real GDP can be greater than or less than potential GDP because in the short run the money wage rate is fixed
Indicate whether the statement is true or false
TRUE
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If private property rights were established in the air, there would probably be
A. more air pollution. B. less air pollution. C. the same amount of air pollution that exists without private property rights in the air. D. better weather.
Common resources are those that are:
a. excludable and rivalrous. b. excludable and nonrivalrous. c. nonexcludable and nonrivalrous. d. nonexcludable and rivalrous.
Each week Jim buys the same market basket composed of a case of ramen noodles, two bottles of coke, and three bags of tortilla chips. Jim has found that it takes more of his wages to buy this market basket than before. We can say ________.
A. Jim's real wage has gone down B. Jim's after tax wage has gone down C. Jim must be buying higher quality products D. Jim's nominal wage has gone down
Which of the following is true of intra-industry trade?
A. Intra-industry trade is said to occur when the United States exports Ford automobiles and imports Honda automobiles. B. Intra-industry trade is mostly based on the differences stressed in the Heckscher-Ohlin trade theory. C. Intra-industry trade is usually discouraged by the government. D. Intra-industry trade is said to occur when the United States exports Ford automobiles and imports petroleum.