Macroeconomics
10th Edition
ISBN: 9781319105990
Author: Mankiw, N. Gregory.
Publisher: Worth Publishers,
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Chapter 9, Problem 6QQ
To determine
The endogenous growth theory.
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An economic system:
a. must choose pure capitalism to adequately answer the three economic questions.
b. must answer the three economic questions to the satisfaction of everyone in society.
c. is a set of social institutions and mechanisms organized to answer society's three primary economic questions.
d. can address problems of scarcity only by embracing the social institution of private property.
e. must not allow some members of society to gain an unfair advantage when answering the three economic questions.
What is the production possibilities frontier?
A. a map that shows areas of the world in which capitalist production is highest
B. a map that shows the frontier beyond which technological innovation is unprofitable
C. a graph that shows the various combinations of resources that can be used to produce a given level of output
D. a graph that shows the various combinations of output the economy can possibly produce given the available resources and technology
The United States is one of the world's wealthiest countries. Think of a recent case in which the decisions of the U.S. government were severely constrained by scarcity. Describe the trade-offs that were involved. What were the opportunity costs of the decisions that were actually made?
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- true or false Technological developments are a fundamental driver of opportunity.arrow_forwardEconomic systems differ according to which two main characteristics? Select one: A. the technology used in production and the quantity and quality of natural resources B. the political system in place and the degree of scarcity facing the economy C. who owns the factors of production and the methods used to coordinate economic activity D. how goods are produced and who gets themarrow_forwardExplain Scarcity and why it exist. also give examplesarrow_forward
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