Guns and butter represent the classic societal tradeoff between spending on which two items?
a. national defence and consumer goods
b. imports and exports
c. law enforcement and agriculture
d. durable and nondurable goods
Answer: a. national defence and consumer goods
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Health care costs rose more than 10 percent in 2011, according to a survey of insurers by Aon Consulting Worldwide. If the increase in costs solely comes from increased wages to nurses and doctors, then for the health care industry
A) variable costs are increasing. B) fixed costs are increasing. C) long run average total cost is decreasing. D) productivity is increasing.
Convergence of output per capita across countries has come from
A) a convergence of saving rates. B) a convergence of the accumulation of capital. C) higher technological progress from the countries that started behind. D) all of the above