Economic growth can be thought of as
A. a decrease in the price level.
B. an increase in aggregate demand.
C. an increase in long-run aggregate supply.
D. an increase in the price level.
Answer: C
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There will be gains from trade when
A. the buyer values a product more highly than the seller. B. money is used as a medium of exchange. C. both the buyer and the seller attach the same value to the product. D. the buyer values a product less highly than the seller.
Investment in both physical and human capital enhances economic growth because it:
a. increases consumption during the current period. b. makes it possible for individuals to produce more goods and services per hour worked. c. encourages firms to expand output by employing more low-productivity workers. d. encourages workers to unionize and, thereby, fight for higher wages.
Discuss the historic increases and decreases in unionism in the United States and how it affects current labor relations today
If the absolute price of a new car is $40,000 and the relative price of a laptop computer in terms of cars is 1/40 of a car, it follows that the absolute price of the laptop is
A) $10,000. B) $1,000. C) $4,000. D) $2,000. E) $1,500.