International per capita GDP comparisons are misleading when countries involved differ greatly in

A. the type of economic system each country uses to solve its economic problem.
B. the freedom of their election processes.
C. the percentage of economic activity that is transacted in organized markets.
D. the quantity of human and natural resources they possess.


Answer: C

Economics

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A) steadily increased. B) steadily decreased. C) remained fairly steady. D) increased during Democratic administrations and decreased during Republican administrations.

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As output increases, diseconomies of scale

a. lead to rising long-run average costs b. lead to declining long-run average costs c. lead to rising short-run average total costs d. lead to declining short-run total cost e. means the law of diminishing marginal returns is affecting production

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The cross elasticity of demand for complementary products must:

a. be greater than one. b. be less than one. c. be zero. d. exceed zero. e. be negative.

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Which of the following would not be considered an internal force that helps move the economy out of a trough?

a. the replacement of worn-out capital b. higher interest rates c. the replacement of depleted inventories d. costs falling lower than prices

Economics