Because resources are scarce, a society cannot give all individuals the standard of living to which each aspires
a. True
b. False
Indicate whether the statement is true or false
True
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In Solow's exogenous growth model, the principal obstacle to continuous growth in output per capita is due to
A) the declining marginal product of labor. B) the declining marginal product of capital. C) limits in the ability of government policymakers. D) too little savings.
In an increasing-cost industry, the entry of new firms
a. decreases equilibrium price b. increases average cost at each level of output c. shifts the industry demand curve to the left d. increases economic profits in the industry e. shifts the long-run industry supply curve to the right
Government programs that take money from high-income people and give it to low-income people typically
a. improve economic efficiency by reducing poverty. b. reduce economic efficiency because they distort incentives. c. have no effect on economic efficiency because they both reduce poverty and distort incentives. d. sometimes improve, sometimes reduce, and sometimes have no effect on economic efficiency.
Suppose households unexpectedly decrease consumption. Which of the following will occur as a result of this unexpected reduction in consumption?
A) an increase in stock prices B) a reduction in stock prices C) no change in stock prices D) an ambiguous effect on stock prices