The cumulative power of productivity growth:
a. emphasizes the importance of short-term growth.
b. emphasizes the importance of long-term growth.
c. emphasizes the importance of capital–labor ratio.
d. increases poverty in an economy

Donald produces nails at a cost of $350 per ton. If he sells the nails for $500 per ton, his producer surplus is

a. $150. b. $350. c. $500. d. $850.

Answer the following statement(s) true (T) or false (F)

1. Microeconomics is the study of the behavior of the overall economies of small countries. 2. Macroeconomics is the study of how certain occurrences affect the economy as a whole. 3. The supply of services is not part of the study of economies because it does not involve the exchange of goods. 4. Economics is the study of how goods and services are exchanged between individuals, businesses, and governments. 5. Traditional economies are the most common economies found in the world today.