What event in 2009 ignited the euro crisis?
What will be an ideal response?
Greece elected a new government in 2009 which found that the previous government had been misreporting economic statistics for years and the public debt amounted to more than 100% of GDP. It became apparent that Greece would experience a sovereign default unless bailed out by the European Central Bank or some other source of credit.
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If a firm uses only capital and labor as inputs, then what should the firm do at a given rate of production if the marginal physical product of labor per last dollar spent is lower than the marginal physical product of capital per last dollar spent?
A) The firm should increase both the quantity of capital and the quantity of labor. B) The firm should decrease both the quantity of capital and the quantity of labor. C) The firm should increase the quantity of capital and reduce the quantity of labor. D) The firm should decrease the quantity of capital and increase the quantity of labor.
Which of the following is a problem when comparing GDPs per capita between nations?
A. GDP per capita only measures income distribution. B. Fluctuations in exchange rates affect differences in GDP per capita. C. GDP per capita is subject to greater measurement errors for IACs compared to LDCs. D. GDP per capita is likely overstated in LDCs due to families producing goods and services outside of the pricing system.