Answer the following statements true (T) or false (F)
1. The demographic transition view of population growth believes that slower population growth will lead to rising incomes.
2. Without an abundant endowment of natural resources, a nation cannot achieve rapid economic growth.
3. Saving is a larger percentage of domestic output in DVCs than in IACs, but the saving is put to poor use.
4. Capital flight from DVCs (developing countries) tends to offset much of the foreign loans and aid that they receive from IACs (industrially advanced countries).
5. When technological advances are of the capital-using kind, it is possible for an economy to increase its productivity without any net investment in capital goods.
1. F
2. F
3. F
4. T
5. F
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Suppose that the expected inflation rate is 3 percent and the actual inflation rate is 6 percent. Then borrowers
A. are worse off and lenders are better off. B. and lenders are both worse off. C. are better off and lenders are worse off. D. and lenders are both better off.
Ted got a ticket to this year’s Super Bowl and paid the face value of $1,000. His cousin offered him $3,000 for the ticket. Ted chose to attend the game. From this, we can infer that Ted’s value for this ticket was
A. less than $1,000. B. more than $2,000. C. at least $3,000. D. the ticket price plus his cousin’s offer, a total of $4,000.
In the circular flow model, which of the following owns the factors of production?
A) only federal, state, and local governments B) only households C) only firms D) both firms and households E) firms, households, and all levels of government
Related to the Economics in Practice on p. 68: Assuming the demand for Baltimore newspapers increases while the supply of Baltimore newspapers decreases, the equilibrium ________ will definitely ________.
A. price; increase B. quantity; increase C. quantity; decrease D. price; decrease