The output gap can best be described as:
A) the percentage difference between GDP and its potential
B) the difference between GDP in the current year compared to the previous year
C) the difference between a nation's GDP and that of the nation with the highest GDP
D) the difference between GDP and its forecasted level
A
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If the marginal propensity to save (MPS) is 0.1, the multiplier will be
A) 0.1. B) 1. C) 5. D) 10.
How can increases in a country's total income improve health?
What will be an ideal response?
Which of the following would be the most accurate means for the government to obtain information about the value of irrigation water for farmers to be supplied by the construction of a new dam?
a. Survey the farmers. b. Hire experts to provide an estimate. c. Use the current cost to farmers of withdrawing water from underground sources. d. Conduct an economic study of how an increase in water supply would affect farmer income.
According to your text, disagreements about the relative efficiency of particular projects are usually disagreements about
A) the best way to conserve energy. B) the best way to conserve non-renewable resources of all kinds. C) scientific facts or technical processes. D) the relative value of particular goods to different people. E) who is entitled to make money from one project or another.