Explain why debt is usually measured using the debt-to-GDP ratio rather than the absolute amount of debt
What will be an ideal response?
Economists believe that the debt-to-GDP ratio does a better job of measuring whether the debt is large or small and in determining whether fiscal policy is sustainable. The debt-to-GDP ratio gives a better measurement of the ability of a government to be able to pay its debt.
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Refer to the production possibility graph above. Assume that the economy is in equilibrium at point e. If the labor supply increases due to immigration, the new equilibrium is most likely to be
A) point h. B) point f. C) point d. D) point e. E) point b.
Which of the following is not an effort by McDonald's to cope with diseconomies of scale?
a. being exposed to country and regions risk, such as environmental protests b. putting mini-restaurants in airports, gas stations, and Wal-Marts c. allowing managers in each region of the U.S. more leeway in pricing and promotion d. reducing product development time e. closing unprofitable restaurants
Which of the following is true of resources?
a. Resources are inputs used to produce goods and services. b. Human resources reflect the skills and productive knowledge of human beings. c. With the passage of time, investment activities can increase the availability of resources. d. All of the above are true.
Why does a typical monopolistically competitive firm face a downward-sloping demand curve?