To state that the resources of the economy are finite implies that
a. we cannot live without them
b. we always want more of them
c. they are nonrenewable
d. at least some of them are renewable
e. there is a fixed quantity of them at any point in time
E
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Along the aggregate production function, as the quantity of labor rises, real GDP
A) rises. B) falls. C) stays the same. D) may fall, rise, or stay the same.
Which theory best explains the wealth inequalities amongst nations?
A) weather B) government institutions C) natural selection D) factors outside of any human control E) levels of corruption
The total government expenditure multiplier is less than one because
A) government expenses affect labor demand. B) labor supply reacts to interest rate changes and consumption demand is affected by taxes. C) investment demand falls dramatically when the government goes into debt. D) the marginal propensity to consume is less than one.
If the nominal interest rate is 6 percent and the rate of inflation is 10 percent, then the real interest rate is
a. -16 percent. b. -4 percent. c. 4 percent. d. 16 percent.