The theory of economic growth focuses on the
A. growth of real income equality in the long run; not on the growth of real income in the short run.
B. growth of resources in the long run, not on the efficiency of resource use in the short run.
C. growth of potential output over the long run, not on fluctuations in the level of economic activity in the short run.
D. advancements in technology over the long run, not on short-run increases in real GDP.
Ans: C. growth of potential output over the long run, not on fluctuations in the level of economic activity in the short run.
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A time-series graph reveals whether there is a ________, which represents ________
A) trend in a variable; a general tendency for the variable to rise or fall B) relationship between two variables; a cross-section relationship C) trends in two variables; unrelated variables D) relationship between two variables; a trend in a variable E) cross-section relationship; a general tendency for the variables to rise or fall
Which of the following statements is FALSE?
A) A perfectly competitive market produces more output and charges a lower price than a monopoly. B) A perfectly competitive firm produces where MR = MC but a monopoly produces where MR > MC. C) In a perfectly competitive market, the price is equal to the marginal cost, but in a market with a single-price monopoly, price exceeds marginal cost. D) The consumer surplus is smaller for a market with a monopoly than for a perfectly competitive market. E) In the long run, a monopoly can earn a larger economic profit than can a perfectly competitive firm.