GDP is used as the basic measure of a society's economic well-being. A better measure of the economic well-being of individuals in society is
a. saving per person.
b. GDP per person.
c. government expenditures per person.
d. investment per business firm.
b
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
Refer to Table 2-6. Which of the following statements is true?
A) Lucy has a comparative advantage in making both products. B) Lucy has a comparative advantage in making tricycles and James in making wagons. C) James has a comparative advantage in making both products. D) Lucy has a comparative advantage in making wagons and James in making tricycles.
With economies of scale came
A) larger families. B) simpler business forms. C) the need for management structures beyond what a family could offer. D) fewer economies of scope.
Which of the following is considered to be the main disadvantage of the sole proprietorship form of business organization?
a. The proprietor and the firm are legally inseparable. b. The proprietor has personal independence. c. The focus of the proprietorship is on local markets. d. The access to local and family labor promotes legal dependence. e. The lack of a bureaucratic structure impedes growth.