Suppose the population falls by 1 percent. For the standard of living to rise
a. nominal GDP can fall by as much as 1 percent
b. nominal GDP must grow by at least 1 percent
c. real GDP must grow by at least 1 percent
d. real GDP must fall by at least 1 percent
e. nominal GDP must fall by more than 1 percent
A
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Many unsuccessful, low performing LDCs have all of the following characteristics except
a. political instability b. reliance on custom and traditions c. absence of infrastructure d. high population growth e. acceptance of new technology
We see a backward-bending labor supply curve whenever
A. the income effect dominates the substitution effect over some range of wage rates. B. the substitution effect dominates the income effect over some range of wage rates. C. minimum wages are set too low. D. minimum wages are set too high.
In which of the following situations would each of the members be responsible for producing an equal share of the total amount of output sold by the cartel engaged in joint profit maximization?
A) When the amount of revenue generated by each member of the cartel is the same. B) When there are no economies of scale in production. C) When each member of the cartel is using the same scale of production. D) When marginal costs of production are the same for each of the members of the cartel.
The fraction that banks must, by law, hold as reserves against the checking deposits of their customers is called the
a. federal deposit insurance premium. b. vault cash quota. c. excess reserve requirement. d. required reserve ratio.