Productive efficiency is achieved when
A) firms add a low profit margin to the goods and services they produce.
B) firms produce the goods and services that consumers value most.
C) there are no shortages or surpluses in the market.
D) firms produce goods and services at the lowest cost.
D
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Higher energy prices can be used to adequately explain the productivity slowdown in
a. the United States and the rest of the world. b. the United States but not the rest of the world. c. the rest of the world but not the United States. d. neither the United States nor the rest of the world.
Which of the following is the basic measure of a nation's economic growth rate?
(A) Nonmarket activities over a given period of time. (B) Percentage change of real GDP over a given period of time. (C) Standard of living over a given period of time. (D) Leading indicators over a given period of time.
Figure 9.5 represents the market for used cars. Suppose buyers are willing to pay $5,000 for a plum (high-quality) used car and $3,000 for a lemon (low-quality) used car. If buyers believe that 80% of used cars in the market are lemons (low quality), what percent of used cars sold will actually be plums?
A. 20% B. 25% C. 33.33% D. 75%
Actual real GDP will be above potential GDP if
A) firms are producing below capacity. B) firms are producing at capacity. C) firms are producing above capacity. D) inflation is rising.