Increases in the total real output of many DVCs do not increase the nation's standard of living because:
A. diminishing returns may be encountered in increasing total output.
B. population increases may dissipate the increase in real output.
C. disguised unemployment in agriculture will persist.
D. surplus farm labor may move from rural areas to industrial areas, causing unemployment.
B. population increases may dissipate the increase in real output.
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"The Great Depression was caused by the 1929 stock market crash.". Which of the following is an indication that this statement is false?
a. The stock market had regained most of its losses from the October 1929 crash by April 1930. b. The recessionary conditions actually began in the mid-1920s before the stock market crash. c. The Great Depression was a result of government failure to intervene in market activity. d. Economic theory indicates that a reduction in stock prices would reduce the consumer price index and thereby stimulate output and employment.