As an economy's capital stock increases, the economy
A) generally experiences increased unemployment of other resources, such as labor.
B) generally decides to engage in international trade.
C) experiences economic growth.
D) gains an absolute advantage in the production of capital goods.
C
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The elasticity measure that has been employed by the courts to assess the degree of market competition is
A. price elasticity of demand. B. income elasticity of demand. C. cross elasticity of demand. D. inverse elasticity of demand.
Refer to Table 5.1. What is Andrea's opportunity cost of producing one bracelet?
A) 1/6 of a tiara B) 2/3 of a tiara C) 6 tiaras D) 7.5 tiaras
Show graphically the effect of technological advance on the price of music downloads. In a separate graph, show what happens to the price of CDs as a secondary effect of the new download technology.
What will be an ideal response?
Aggregation is the process of
A) calculating real GDP based on nominal GDP and the price index. B) summing individual economic variables to obtain economywide totals. C) forecasting the components of GDP. D) predicting when recessions will occur.