Which of the following statements is not correct?
a. Economic growth is best measured by the annual percentage change in nominal GDP per capita.
b. An economy producing along the production possibilities curve is operating at its potential output.
c. Economic growth is a crucial determinant of people's well-being
d. If the quality of labor improves, an economy's production possibilities curve will shift outward.
a
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Real-world competition should not be viewed as a static condition but rather as a fight between the forces of monopolization and the forces of competition.
Answer the following statement true (T) or false (F)
Table 1.2 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S. capacity, ceteris paribus.Table 1.2Production Possibilities for BombersCombinationNumber of B-1 BombersOpportunity cost(Foregone Stealth)Number of Stealth BombersOpportunity cost (Foregone B-1)A20Na195 B35 180 C45 150 D50 100NAOn the basis of Table 1.2, the law of increasing opportunity costs applies to
A. Stealth bombers but not to B-1 bombers. B. B-1 bombers. C. Both B-1 bombers and Stealth bombers. D. Neither bomber.
When the Fed increases the money supply, interest rates
A. rise, causing velocity to fall. B. fall, causing velocity to fall. C. rise, causing velocity to rise. D. fall, causing velocity to rise.
A country that must inhibit imports should give preference to
A. quotas over tariffs because quotas are less likely to distort trade patterns between nations. B. tariffs over quotas because, unlike quotas, tariffs offer no special benefits to inefficient exporters. C. export subsidies over quotas or tariffs because export subsidies can protect a nation’s domestic producers. D. an embargo wherever possible because an embargo can serve as a political weapon in addition to being a “trade stopper.”