Most economists would probably agree that new technologies are the single most important source of productivity improvement, hence of __________ in general.
A. economic growth
B. human capital
C. entrepreneurial activity
D. absolute advantages
Answer: A. economic growth
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A country that joins an exchange rate area
A) gives up its ability to use the exchange rate for the purpose of stabilizing output and employment. B) does not give up its ability to use the exchange rate and monetary policy for the purpose of stabilizing output and employment. C) gives up its ability to use the exchange rate and monetary policy for the purpose of stabilizing output and employment. D) gives up its ability to use only monetary policy for the purpose of stabilizing output and employment. E) does not gives up its ability to use only monetary policy for the purpose of stabilizing output and employment.
An increase in the money supply in the simple Keynesian model causes
A) income to fall. B) inventories to rise. C) interest rates to fall. D) investment to fall.
Economists usually assume that ________ is a variable input in the ________ run.
A. capital; short and long B. labor; short C. capital; short D. labor; short and long
The expected damage to innocent third parties per unit of the good produced is shown as the "external cost" in Figure 27.1. An unregulated competitive market for the product produces a quantity of Q* units, which sell for a price of P* per unit. The amount producers of this product could reasonably afford to spend per unit produced in order to successfully insulate themselves from possible just and reasonable jury awards in lawsuits is 
A. greater than the external cost. B. zero. C. equal to the external cost. D. greater than zero but less than the external cost.