A government sometimes creates an excess supply of a product by setting a minimum price at which the product may be sold to consumers. This is sometimes called a:
A. price ceiling.
B. price floor.
C. tax.
D. subsidy.
Answer: B
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The key variable in determining changes in a country's standard of living is the
A. unemployment rate. B. long-run rate of economic growth. C. inflation rate. D. interest rate.
From 1900 to 2013, real GDP per person has had two important attributes
A) It has grown substantially over time and there are small differences from country to country. B) It has grown unevenly over time in the U.S. but it has grown substantially. C) It has grown evenly over time in the U.S. and there are huge differences from country to country. D) It has fluctuated around a trend in the U.S. but it has not grown much for all the Southeast Asian countries. E) It has doubled in the U.S. but there have been many recession periods.
The largest component of output growth in the U.S. is
a. labor productivity growth. b. capital growth c. labor growth. d. knowledge growth. e. None of the above.
Economic rent serves
A) a descriptive function by making some wealthier than others, but serves no allocative function. B) an allocative function by guiding available supplies to the most efficient use. C) only to make the rich richer and the poor poorer. D) no useful function in a modern economy.