Would the use of money, as opposed to barter, increase the growth rate of real GDP in a country over time? Why or why not?
What will be an ideal response?
Yes, because money makes exchanges easier and increases specialization. Greater specialization raises productivity, which increases the growth rate of real GDP.
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In broad terms the difference between microeconomics and macroeconomics is that
A) they use different sets of tools and ideas. B) microeconomics studies decisions of individual people and firms and macroeconomics studies the entire national economy. C) macroeconomics studies the effects of government regulation and taxes on the price of individual goods and services whereas microeconomics does not. D) microeconomics studies the effects of government taxes on the national unemployment rate.
What organization emerged from the GATT, starting January 1, 1995, with expanded responsibilities and global interaction?
a. the Doha round b. the World Trade Organization c. the United Nations d. the Institute for International Economics
In an open-market purchase the Federal Reserve ________ government bonds from the public and the supply of bank reserves ________.
A. buys; increases B. sells; increases C. sells; decreases D. buys; decreases
Refer to the above table. Country A has a per capita real GDP of $1000 and B has a per capita real GDP of $10,000. A is growing at a rate of 5 percent a year and B at a rate of 4 percent a year. After 50 years, how much larger is per capita real GDP in B than A? How much is this in real dollars?
A. B is a little less than 2 times smaller, or almost $20,000 smaller on a real per capita basis. B. B is 8 times larger, or $175,000 larger on a real per capita basis. C. B is 12 times larger, or $230,000 larger on a real per capita basis. D. B is a little over 6 times larger, or almost $60,000 larger on a real per capita basis.