Which of the following is a TRUE statement?
A. The most important source of economic growth is the extent to which the government directly enters into decisions where research and development activities should be directed and who should be involved in research and development activity.
B. The most important sources of economic growth are the quantity and quality of the land and other natural resources a country controls.
C. The most important source of economic growth is the rate of population growth since a growing population stimulates demand for goods and services, and provides the labor to produce the goods and services.
D. The most important sources of economic growth are the new ideas generated by entrepreneurs in an economic system that permits them to capture the rewards of their entrepreneurial activities.
Answer: D
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If interest rates increase, the present value of a given payment in the future will
A) cause an inflation. B) remain the same. C) increase. D) decrease.
Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D1 and S1 (point A)
If there is an increase in the wages of apple workers and an increase in the price of oranges, a substitute for apples, the equilibrium could move to which point? A) none of the points shown B) B C) C D) E
If the government places a $1.20 tax on each pizza sold
A) consumers will have to pay $1.20 more for each pizza they buy. B) the supply curve will shift left by $1.20. C) the demand curve will shift right by $1.20. D) both the demand curve and the supply curve will shift by 60 cents each.
If incomes were equally distributed in the United States, each fifth of the population would receive ____ percent of the income
a. 5 b. 10 c. 15 d. 20