From the viewpoint of economic efficiency, when competitive forces in an industry are weak, market allocation will often lead to
a. an output of the product that exceeds the amount consistent with ideal economic efficiency.
b. an output of the product that is less than the amount consistent with ideal economic efficiency.
c. an output of the product that equals the amount consistent with ideal economic efficiency.
d. product prices that are below the cost of production.
B
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"Brain-drain" refers to the:
A. Relatively low levels of human capital in low-income countries B. Impact of migration on human capital levels in high-income countries C. Emigration of highly educated workers to higher income countries D. Inability of workers in low-income countries to achieve the levels of human capital possessed by workers in high-income countries.
Suppose real GDP is $12.1 trillion and potential GDP is $12.6 trillion. To move the economy back to potential GDP, Congress should
A) lower government purchases by $500 billion. B) raise government purchases by $500 billion. C) raise government purchases by more than $500 billion. D) lower taxes by an amount less than $500 billion. E) lower taxes by $500 billion.
In the United States, the long-run average growth rate of velocity in recent decades has been
A) about 2 percent per year. B) about 1 percent per year. C) virtually zero. D) about -1 percent per year. E) about -2 percent per year.
The Lorenz curve represents: a. the line of perfect inequality
b. the line of perfect equality. c. the nonwage income of households. d. the actual distribution of income.