Explain productivity and discuss how it is related to the standard of living in terms of the circular flow model.
What will be an ideal response?
but students should identify productivity as a measure of how efficiently resources are used and demonstrate understanding of how all resources can become more productive, even though labor is most often used to measure productivity. Answers should also note that a rise in efficiency results in a rise in the standard of living and demonstrate understanding of the circular flow model and how the aggregate value of all goods and services produced in the economy must equal the payments made to the factors of production.
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The equity argument for government financing of education _____
a. is dependent upon the socialization argument b. does not imply government financing c. does not imply government production d. is dependent upon externalities being inframarginal
Refer to Figure 8.2. As the competitive industry, not just the firm in question, moves toward long-run equilibrium, the firm will be forced to operate at what level of output?
A) 22 B) 34 C) 38. D) 50 E) 64
The current chairman of the Federal Reserve Board of Governors is
a. Milton Friedman b. Alan Greenspan c. Paul Volcker d. James Baker e. John Maynard Keynes
Any item that serves as a medium of exchange is called
A) gold. B) capital. C) silver. D) money.