Which of the following statements is TRUE?
A) A growing economy should see a decline in relative poverty but not in absolute poverty.
B) A growing economy should see a decline in absolute poverty but not in relative poverty.
C) A growing economy should see a decline in both absolute and relative poverty.
D) A growing economy is usually unrelated to changes in either absolute or relative poverty.
B
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All else equal, relative to a person who earns minimum wage, a person who earns $30 per hour has:
A. a lower opportunity cost of driving farther to work. B. a higher opportunity cost of taking the day off work. C. the same opportunity cost of spending time on leisure activities. D. a higher opportunity cost of working an additional hour.
Leather belts and leather shoes are substitutes in production. If style changes increase the demand for leather belts, the supply curve of leather shoes will shift
A) leftward and the equilibrium price of leather shoes will fall. B) leftward and the equilibrium price of leather shoes will rise. C) rightward and the equilibrium price of leather shoes will fall. D) rightward and the equilibrium price of leather shoes will rise.
The use of money as a unit of account:
a. discourages specialization and division of labor. b. inhibits the exchange of goods and services. c. makes it difficult to compare the relative values of goods and services. d. lowers information costs relative to barter. e. relies on the existence of a double coincidence of wants.
Market equilibrium is the intersection of the demand curve and the social cost curve
a. True b. False Indicate whether the statement is true or false