During a war, a government will often draft people, most of whom are presently employed, into the army. An economist, computing the real cost of the war, would be sure to include which of the following items?
a. the value of the civilian goods no longer produced by the new soldiers
b. the cost of feeding and clothing the new soldiers
c. the dollar cost of the payroll
d. the higher prices of civilian goods due to wartime shortages
e. the cost of transporting the soldiers to combat
a
You might also like to view...
Corruption reduces growth most directly because governments invest in projects with low productivity
a. True b. False Indicate whether the statement is true or false
Net exports for the United States are:
A. Negative if American exports are less than imports. B. Negative if American exports are greater than imports. C. Zero if American exports are greater than imports. D. Positive if American exports are less than imports.
An increase in demand will induce entry by firms in the long run.
Answer the following statement true (T) or false (F)
Related to the Economics in Practice on p. 6: According to the Economics in Practice, ________ of the $10 retail value of a Barbie doll is captured in the United States.
A. none B. 35 cents C. $2 D. $8