One of the Ten Principles of Economics in Chapter 1 is that people face tradeoffs. The growth that arises from capital accumulation is not a free lunch. It requires that society
a. conserve resources for future generations.
b. sacrifice consumption goods and services now in order to enjoy more consumption in the future.
c. recycle resources so that future generations can produce goods and services with the accumulated capital.
d. None of the above is correct.
b
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The purchasing power (real value) of the federal minimum wage in March 1990 was the same as it was in 1981
Indicate whether the statement is true or false
According to the principle of comparative advantage,
a. a country will benefit by specializing in the production of goods in which it has a relatively lower cost of production. b. a country will benefit by specializing in the production of goods in which it has a relatively higher cost of production. c. a country will benefit by importing goods in which it has a relatively low opportunity cost. d. a country will benefit by becoming economically self-sufficient.
Suppose that velocity and output are constant and that the quantity theory and the Fisher effect both hold. What happens to inflation, real interest rates, and nominal interest rates when the money supply growth rate increases from 5 percent to 10 percent?
The total of consumer plus producer surplus is ________ at the market equilibrium.
A. smallest B. negative C. greatest D. zero