21. Small differences in economic growth rates cannot produce large differences in living standards over time because of compounding. True False 24. ____________________ helps to explain why small differences in growth rates eventually produce large differences in living standards. A. Diminishing marginal productivity B. Increasing returns to scale C. Decreasing returns to scale D. Compounding 25. Given nominal GDP of $5 trillion and inflation is 25% during the year, we can conclude that real GDP is equal to: A. $4.00 trillion B. $4.75 trillion C. $5.25 trillion D. $6.25 trillion 27. Which of the following statements does not characterize the Classical view of business cycles? A. Laissez-faire is the best policy response to the business cycle. B. Fluctuations in business activity are to be expected and should be accepted just as changes in the seasons are accepted. C. Expansions and recessions do not justify government macroeconomic intervention. D. The appropriate macroeconomic policy can eliminate fluctuations in economic activity. 28. The growth produced by markets: A. increases the level of per capita income and creates a more equitable distribution of income as well. B. increases the level of per capita income but may make the distribution of income less equitable. C. does not affect the level of per capita income at all. D. does not affect the distribution of income at all. 31. Which of the following factors is not a source of economic growth in market economies? A. Capital accumulation. B. Technological development. C. Entrepreneurship. D. Diminishing marginal productivity. 36. Suppose the quantity of each input increases by 9% while output increases by 12%. In that case, returns to scale are: A. decreasing. B. constant. C. increasing. D. not defined since more than one input is changing. 46. Assuming output/production is constant (does not fluctuate), if the price level doubles in a given year, so does nominal output. True False 49. Which of the following is not included in GNP for the U.S. but is included in GDP for the U.S.? A. The income of the U.S. citizen working in Portugal. B. The value of a Portuguese company's production in the United States. C. The value of a U.S. company's production in Portugal. D. The sales of a U.S. company's output to U.S. citizens. 53. If your nominal wage is going up faster than the general price level in the economy: A. your real wage is declining. B. your real wage is increasing. C. your nominal wage is declining. D. your purchasing power is declining. 54. Use the following information to answer the question: There are three firms in an economy: X, Y, and Z. Firm X buys $300 worth of goods from firm Y and $300 worth of goods from firm Z, and produces 250 units of output at $4 per unit. Firm Y buys $250 worth of goods from firm X, and $250 worth of goods from firm Z, and produces 300 units of output at $6 per unit. Firm Z buys $75 worth of goods from firm X, and $500 worth of goods from firm Y, and produces 500 units of output at $2 per unit. Given this information, using the Value Added approach to help eliminate intermediate goods and services, what is the economy's GDP? A. $1675 B. $2125 C. $2775 D. $5000
Economics - 4 Answers
Random Answers, Critics, Comments, Opinions :
1 :
You will have much better luck if you ask a question rather than posting your homework for others to do for you.
2 :
I highly suspect this is a TEST. Please refrain from asking the Yahoo community to engage in academic dishonesty by helping you CHEAT!
3 :
Cant be bothered to answer these anymore. So i will tell you what I used to do when ICQ first came out. Pretend to be a hot girl online in a room full of high school economics nerds or maths whizzes, flirt and say you need help with homework. You'll get a few willing to help you in exchange for a false phone number. Ofcourse i did this in 95.. not sure if kids these days are any smarter on chatrooms
4 :
I have answered the other questions, and hope that they will learn somethings. Why are they cheating?And on whom? It must be the obligation of the professor and the system to make good enough regulations.
