Firms in an economy with high labor costs have an incentive to use more ________ techniques.
A. capital-intensive
B. labor-dependent
C. capital-saving
D. labor-intensive
Answer: A
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Which one of the following transactions would be included in GDP?
a. Ava pays $50 for a used picture frame at a neighborhood garage sale. b. Ethan donates $500 to his town's junior college scholarship fund. c. Emily pays $500 to fix the front end of her car damaged in a recent accident. d. Mia pays $5,000 to purchase 100 shares of Microsoft stock.
Which of the following is an observation made by economist Michael Kremer?
a. World growth rates increased as the population increased. b. Technological progress allows for increasing population because of advances in agriculture. c. World population is growing so rapidly that soon it will outstrip natural resources and our standard of living will decline. d. All of the above are observations made by Kremer.
A balanced budget occurs when
A) the national debt is reduced to zero dollars. B) a budget deficit during one year is matched by a budget surplus in the next year. C) transfer payments equal tax revenues. D) government expenditures equal tax revenues. E) the deficit-GDP ratio equals one.
Ceteris paribus, if the government transfers income from individuals with a high MPC to those with a low MPC, in the short run, spending and output will:
A. Increase. B. Decrease. C. Stay the same. D. Increase or decrease depending on the level of saving.