How do we calculate growth in a nation's standard of living?
What will be an ideal response?
The standard of living is measured by real GDP per person. Thus growth in the standard of living is calculated using the growth rate of real GDP per person.
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Tax cuts aimed at businesses can stimulate
A) social spending. B) net exports. C) private consumption. D) investment spending.
Which statement is true about the Malthusian theory?
A. It predicts that famine can easily be averted. B. It is an application of the law of diminishing returns. C. It is unduly optimistic. D. It has proven true in most countries.
Equilibrium takes place where:
A. supply and demand intersect. B. supply is highest. C. demand is highest. D. prices are maximized.
The present aim standard of rationality accommodates a much ________ range of observed behavior than traditional economic models, but has been criticized because the model is too ________.
A. broader; flexible B. narrower; inflexible C. broader; inflexible D. narrower; flexible