Which of the following statements best describes the production and allocation of resources after the United States entered World War II?
a. Government spending as a percentage of GNP during this period never exceeded the maximum level at the height of the Depression under Roosevelt's New Deal policies.
b. Production shifted out closer to the production possibilities frontier, primarily as a result of technical change.
c. Production shifted out toward the production possibilities frontier, primarily as a result of underutilized resources being utilized.
d. Greater production of goods to support the war involved nominally higher incidents of disabling injuries in the workplace, yet not increases in the rates of disabling injuries.
c. Production shifted out toward the production possibilities frontier, primarily as a result of underutilized resources being utilized.
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Refer to the below graphs. (Assume that the pre-migration labor force in Country A is 100 and that it is 150 in country B.) Domestic output in country B will, after immigration:
A. Increase by $50M
B. Increase by $250M
C. Decrease by $50M
D. Decrease by $250M
A temporary decrease in the price of oil would be considered a:
A. long-run supply shock. B. demand shock. C. short-run supply shock. D. The changing price of oil would not affect any of these.
What two factors are the keys to determining labor productivity?
A) the business cycle and the growth rate of real GDP B) the growth rate of real GDP and the interest rate C) the level of technology and the quantity of capital per hour worked D) the average level of education of the workforce and the price level
Many drugs are illegal in the United States. Despite this law, illegal drugs are usually available at a price many times higher than they would be if the drugs weren't illegal. The high price of illegal drugs is an example of:
A. the market affecting political forces. B. the failure of the market. C. the failure of political forces. D. political forces affecting the market.