Without trade, the consumption possibilities for two nations are:
A. outside their production possibilities curve.
B. inside their production possibilities curve.
C. along their production possibilities curve.
D. at a point equal to the world production possibilities curve.
Answer: C
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Economic growth as it is currently measured
A. does not account for how increased per capita income is distributed across income groups. B. understates actual economic growth since it does not adjust for changes in leisure. C. does not consider? spiritual, cultural or social difficulties that may arise from growth. D. All of the above.
In a perfectly competitive market, marginal revenue is the same as the market price
a. True b. False Indicate whether the statement is true or false
Output per capita will tend to increase if the labor force participation rate in a country ____ or if workers put in ____ hours. a. rises; longer
b. rises, shorter. c. falls; longer. d. falls; shorter
Figure 5-12
In Figure 5-12, the move in the consumer equilibrium from A to B shows that
a.
beer is an inferior good, but wine is a normal good.
b.
wine is an inferior good, but beer is a normal good.
c.
both beer and wine are normal goods.
d.
both beer and wine are inferior goods.