The growth of GDP may understate changes in the economy's economic well-being over time if the ________.
A. amount of leisure decreases
B. quality of products and services improves
C. environment deteriorates because of pollution
D. distribution of income becomes increasingly unequal
Answer: B
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Which of the following is one of the most important benefits of money in an economy?
a. Money allows for the exchange of goods and services. b. Money allows for the accumulation of wealth. c. Money makes exchange easier, leading to more specialization and higher productivity. d. Money encourages people to produce all of their own goods (self-sufficiency) and therefore increases economic stability.
The aim of unconventional monetary policy tools is to:
A. increase the value of the dollar. B. stimulate the economy in coordination with fiscal policy. C. boost liquidity and reduce interest rates when credit channels are clogged. D. slow down liquidity and increase interest rates.
An increase in supply causes
A. price to decrease. B. price to increase. C. quantity supplied to decrease. D. supply and price to increase.
The typical cost curves are U-shaped due to the
A) law of diminishing marginal utility. B) law of supply. C) law of demand. D) law of diminishing marginal product.