Economic growth may overstate changes in the standard of living if
A. the number of students attending college is increasing.
B. the average workweek is increasing.
C. people are retiring at a younger age.
D. expected life spans are increasing.
Answer: B
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Which of the following are separate flows in the circular flow model?
A) the flow of income received by households and the flow of tax revenues paid by households B) the flow of income earned from the sale of resources and the flow of expenditures on goods and services. C) the flow of goods and the flow of services D) the flow of costs and the flow of revenue
A variable that is essential to economic growth is:
A. savings. B. capital. C. technology. D. All of these are important to economic growth.
For each watch Denmark produces, it gives up the opportunity to make 50 pounds of cheese. Germany can produce one watch for every 100 pounds of cheese it produces. Which of the following is true with regard to opportunity costs in the two countries?
a. The opportunity cost of producing watches is lower in Denmark. b. The opportunity cost of producing cheese is lower in Denmark. c. The opportunity cost of producing watches is identical in both countries. d. It is impossible to compare opportunity costs because the two countries use different currencies. e. In Germany the opportunity cost of producing one pound of cheese is one watch.
A graphical plot of consumption expenditures against disposable income for the US over the past 20 years shows
a) no apparent relationship between consumption and disposable income b) consumption remaining roughly constant as disposable income rises c) consumption falling as disposable income rises d) consumption rising as disposable income has fallen e) consumption rising almost proportionately as income rises