The mercantilism policy failed to generate gains from trade for countries which adopted it because of:
a. increases in consumer spending
b. high levels of federal debt.
c. supply-side shocks from the oil-exporting countries.
d. runaway inflation in the U.S.
e. retaliations from other countries.
e
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Labor productivity is $20 per hour and aggregate hours are 400 billion hours
a. What does real GDP equal? b. Because of technological advances, labor productivity doubles to $40 per hour. Furthermore, assume that aggregate hours decrease to 300 billion hours. What does real GDP equal?
Producers are willing to offer greater quantities for sale at higher prices because
a. they have the incentive to pay the increasing opportunity cost of resources necessary to attract them from alternative uses b. they will decrease their profits by expanding production at higher prices c. the government orders them to do so d. lower prices attract new firms, which have higher costs of production e. they hire superior quality, higher-priced resources as production expands