Potential GDP is the quantity that an economy can produce by:
a. fully employing its existing levels of labor, physical capital, and technology.
b. partially employing its existing levels of labor, physical capital, and technology.
c. fully employing its future levels of labor, physical capital, and technology.
d. partially employing its future levels of labor, physical capital, and technology.
a. fully employing its existing levels of labor, physical capital, and technology.
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Gross Domestic Product is the market value of all ________ produced within a country in a given period of time
A) final goods B) intermediate goods C) final services D) intermediate services E) final goods and services
If the MPC is 0.8, then the MPS is
A) 0.2. B) 1. C) 5. D) 8.
Which of the following is the strongest criticism of the model of the rational consumer maximizing marginal utility per price within the constraints of a budget?
a. It is difficult for consumers to know the exact utility of the products they are buying. b. It is difficult for consumers to know the exact price of the products they are buying. c. It is difficult for consumers to accurately calculate the budget they have available to spend. d. It is difficult for consumers to accurately calculate the demand for the products they are buying.
Why did American colonists have trouble redeeming Continentals, representative money backed by the Second Continental Congress?
(A) There was a shortage of gold and silver. (B) The government had no power to collect taxes. (C) Colonists preferred to use bills issued by the Massachusetts Bay Colony. (D) They were thought to be a symbol of central government control.