no missing data select the most correct answer***

24.(1)

When we say the cost of living has gone up, we mean that, looking broadly over a range of goods and services:

a dollar buys less today than it used to buy.

a dollar buys more today than it used to buy.

a dollar buys the same today as it used to buy.

our income has increased to match the cost of those goods.

25.(1)

Growth often requires:

concurrent improvements in many aspects of the economy.

governments to invest in one facet of the economy at a time, starting with education.

governments to invest in one facet of the economy at a time, starting with basic infrastructure.

governments to invest in one facet of the economy at a time, starting with leapfrog technology.

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26.(1)

Using public policy to promote health can:

contribute to growth.

take away resources from those that promote growth.

hurt a country's chance of reaching high growth.

discourage citizens from taking care of themselves.

27.(1)

Factories owned by U.S. firms on the Mexican side of the U.S.-Mexico border are:

an important source of foreign direct investment in Mexico.

not an example of foreign direct investment in Mexico.

troubling for the Mexican government.

harmful to Mexico's efforts to increase their economic growth.

28.(1)

An example of U.S. foreign direct investment would be:

a factory in Canada owned by a U.S. citizen.

a factory in Japan owned by a Canadian citizen.

a factory in New Mexico owned by a Japanese citizen.

All of these are examples of foreign direct investment.

29.(1)

Governments invest in infrastructure:

to increase the productivity of businesses.

to spur economic growth.

to increase the growth rate of GDP per capita.

All of these are reasons why the government provides infrastructure.

30.(1)

An example of government investment in physical capital to increase business productivity is:

roadways.

bridges.

sewer systems.

All of these are examples of ways governments can increase productivity.

31.(1)

Fossil fuels are considered:

a renewable resource.

a nonrenewable resource.

physical capital.

technology.

32.(1)

Trees are considered:

a renewable resource.

a nonrenewable resource.

physical capital.

technology.

33.(1)

An example of a natural resources is:

a river.

a forest.

a coal deposit.

All of these are examples of natural resources.

)

34.(1)

An example of human capital would be:

your computer.

your writing skills.

your desk.

None of these is an example of human capital.

35.(1)

Education and training is a way to build:

human capital.

physical capital.

technological capital.

All of these could be true.

36.(1)

An example of physical capital is:

a tractor.

a farmer.

a high-yield seed varietal.

All of these are examples of physical capital.

37.(1)

Increases in productivity per person lead to increases in per capita income, which we call:

economic growth.

GDP per capita.

the GDP deflator.

the producer productivity index.

38.(1)

Productivity is generally measured as:

output per worker.

nominal output over time.

real output over time.

output per year.

39.(1)

The rule of 70 estimates how long it will take a country to double its real GDP per capita by:

dividing the average growth rate by 70.

dividing 70 by the average growth rate.

dividing the current real GDP per capita by 70.

multiplying the average growth rate by 70 percent.

40.(1)

Creating economic growth:

is well understood by macroeconomists.

has two central tenets upon which the theory is based.

involves savings, capital, labor, and technology.

All of these are true.

41.(1)

Policies that make it more difficult to fire an employee are likely to:

lead to greater unemployment, because employers will be more hesitant to hire someone.

lead to greater unemployment, because employees will quit more often.

lead to less unemployment, because everyone will value their job more.

lead to less unemployment, because employers will not be able to fire as many people.

42.(1)

We would expect that policies to protect workers would:

lead to greater unemployment.

lead to less unemployment.

have no impact on unemployment.

affect those seasonally unemployed more profoundly than other unemployed workers.

43.(1)

Economists believe that lower taxes should reduce unemployment because:

people have more incentive to find a job, knowing they will keep more of the income they earn from the job when taxes are low.

people will not want to miss out on the opportunity to keep more of the income they earn when taxes are lower, so they will have an incentive to keep their job and not quit.

people have more incentive to be productive if the money they earn is not being taxed as much when taxes are low.

None of these is true.

44.(1)

Labor unions are:

groups of employees who join together to bargain with their employer(s) over salaries and work conditions.

groups of employers who join together to create fair employment packages for employees within a certain geographical area.

groups of employers who petition the government to regulate the safety conditions of certain industries.

groups of employees who petition the government to oversee the employment conditions of employees who work for major corporations.

45.(1)

If the minimum wage is set at a level above the equilibrium wage:

it will have no effect.

it will be a nonbinding minimum wage.

it could cause unemployment.

All of these are true.

46.(1)

A minimum wage is:

the lowest wage that a firm is legally allowed to pay its workers.

the highest wage that a firm is legally obligated to pay its non-skilled labor.

the wage every high school dropout will earn if they are employed.

None of these is correct.

47.(1)

Unemployment is a:

leading indicator, because the business cycle follows it.

lagging indicator, because the business cycle follows it.

leading indicator, because it follows the business cycle.

lagging indicator, because it follows the business cycle.

48.(1)

Cyclical unemployment:

is unemployment caused by short-term economic fluctuations reflected in GDP growth.

is unemployment that results from a mismatch between the skills workers can offer and the skills that are in demand.

is unemployment caused by workers who are changing their location, job, or career.

is the effect of wages remaining persistently above the market-clearing level.

49.(1)

When the economy slows down:

firms contract their operations.

demand for workers decreases.

GDP growth is slowing or negative.

All of these are true.