Why was running a budget deficit to build the U.S. highway system in the 1950s a benefit to the country?
a. The costs of building the highway system were so small that they were considered irrelevant.
b. There were benefits of increasing potential GDP, so the increased costs were not considered.
c. The benefits of it increasing potential GDP were greater than the increased costs of borrowing for the deficit.
d. The costs of building the highways system were greater than the benefits of building the highway system.
c. The benefits of it increasing potential GDP were greater than the increased costs of borrowing for the deficit.
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
In the Solow model, which of the following is an exogenous variable?
A) productivity B) the capital-labor ratio C) consumption per worker D) investment per worker
The RBV perspective locates the source of competitive advantage for a firm at the
a. Individual firm level b. Industry level c. Customer Level d. None of the above
If the equilibrium wage is below the actual wage:
A. the demand for labor will increase. B. the demand for labor will decrease. C. the wage rate will fall. D. the wage rate will rise.