Immiserizing growth is most likely to occur when
A. the increase in population equals the increase in national income of a country.
B. economic growth leads to a deterioration of a country's terms of trade.
C. the import payments of a country decline relative to its export earnings
D. the benefits of economic growth are not shared equally by all residents of the country.
Answer: B
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The level of aggregate output and income where there is a balance between spending and production decisions and where the economy moves toward is called:
A) disequilibrium level of output and income. B) equilibrium level of output and income. C) disequilibrium level of employment. D) none of the above.
Studies of 18th century colonial demographics indicate that
a. the population growth rate of blacks was similar to that of whites. b. migration was the main reason for the growth in the black population. c. the death rate of blacks were much higher than the death rate of whites. d. the birthrate of blacks was much lower than the birthrate of whites.
The authors open Chapter 17 with a contrast between the Fed's actions in response to the terrorist attacks of September, 2001 and its response to the financial crisis of the Great Depression. Why was the Fed successful at dealing with the crisis in 2001, and not as successful with the crisis of the early 1930s?
What will be an ideal response?
You can spend $10 for lunch and you would like to purchase two cheeseburgers. When you get to the restaurant, you find out the price for cheeseburger has increased from $5 to $6, so you decide to purchase just one cheeseburger. This is best described as:
A. an increase in the buyer's reservation price. B. a decrease in the buyer's reservation price. C. the substitution effect of a price change. D. the income effect of a price change.