The "allowable deficit" that causes no change in the debt-GDP ratio is equal to the ________ times ________
A) interest rate, outstanding national debt
B) interest rate, nominal GDP
C) rate of nominal GDP growth, outstanding national debt
D) rate of nominal GDP growth, nominal GDP
C
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Refer to above figure. If manufacturing labor were to increase to OmL2, how much value would the economy as a whole gain?
What will be an ideal response?
Economists assume that tastes and preferences of individuals are:
a. constantly in flux. b. determined by product prices. c. unchanged during one's life. d. given and are relatively stable.
Economies of scale associated with financial intermediaries means:
A. the cost per transaction falls as a larger volume of similar transactions are handled. B. the cost per transaction decreases regardless of the number of transactions. C. the cost per transaction increases as more transactions are handled. D. the total cost of handling transactions falls as more transactions of different kinds are handled.
The study of economics is primarily concerned with:
A. keeping private businesses from losing money B. demonstrating that capitalistic economies are superior to socialistic economies. C. choices that are made in seeking the best use of resources. D. determining the most equitable distribution of society's output.