When we study economic growth, we are most concerned about changes in
A) the output ratio.
B) the level of natural real output.
C) the absolute difference between natural and actual real output.
D) None of these.
B
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In the above figure, at the equilibrium price and quantity, consumer surplus is ________
A) $90 B) $60 C) $45 D) $30
If the four-firm concentration ratio is a very small number, then
A) there is a high degree of competition in the market. B) there is no competition in the market. C) the market must be dominated by a few firms. D) the market is not perfectly competitive.
An equal increase in all bond interest rates
A) increases the return to all bond maturities by an equal amount. B) decreases the return to all bond maturities by an equal amount. C) has no effect on the returns to bonds. D) decreases long-term bond returns more than short-term bond returns.
Which of the following is NOT an example of moral hazard in business?
A) A bank buys risky mortgage securities because they believe the government will provide a bail-out if the investment performs badly. B) A firm uses venture capital to speculate in the commodity futures market. C) A firm does not hire adequate security protection for its warehouse after it pays for insurance on the property. D) Firms with the large debt problems are more likely to apply for bank loans than financially stable firms.