Potential GDP is the
A) the maximum amount of production that can be produced while avoiding shortages of labor, capital, land, and entrepreneurship that would bring rising inflation.
B) current value of production in the economy.
C) value of production when the economy is in a recession.
D) value of production when the economy is at a peak.
A
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The United States was unable to maintain its dominance in the production of televisions because:
A. automated techniques allowed production to be outsourced to countries with less-skilled workers. B. the product designs evolved too rapidly for engineers in the United States to keep up. C. the highly technical skills necessary to produce televisions are greater in other countries. D. the raw materials necessary to build televisions became scarce in the United States.
The "dual" nature of our banking system got its start in the
A) 1820s. B) 1860s. C) 1910s. D) 1930s.
In the long run, the quantity of capital available to a firm is fixed
a. True b. False Indicate whether the statement is true or false
A homeowner will be away from her house for six months. The monthly mortgage payment on the house is $1,000 . The owner's cost of utilities is $100 if the house is unoccupied but $300 if the owner rents it out. If the owner wishes to minimize her losses from the house while away, she should rent the house for as much as the market will bear, as long as monthly rent is greater than which of the
following? (Assume wear and tear to be zero regardless of whether the house is occupied.) a. $200 b. $300 c. $1,100 d. $1,300