When the labor market is in equilibrium, real GDP ________ potential GDP
A) is greater than
B) is equal to
C) is less than
D) might be greater than, less than, or equal to
E) is not comparable to
B
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The ratio (in physical units) at which two countries trade goods is known as the
a. opportunity cost b. marginal social cost c. price to earnings ratio d. comparative advantage ratio e. terms of trade
An export subsidy imposed by a large country can be more damaging to national welfare than an export subsidy imposed by a small country because
A. the consumption effect is necessarily larger for the large country. B. the net national gains of the large country are overshadowed by the net welfare loss of the world. C. the terms of trade worsen for the large country but not for the small country. D. the production effect is necessarily larger for the large country.
Explain why a firm may rationally make an investment when its cash flow from the investment is not positive each year
What will be an ideal response?
A situation in which society may not be able to rank its preferences consistently through paired-choice majority voting is:
A. The fallacy of limited decisions B. The paradox of voting C. The median-voter model D. Political logrolling