Economics: The Basics 1st Edition by Mike Mandel

Exercise 5

Say whether each of the following statements is true or false.
a) A growing economy usually produces more necessities and more luxuries.
b) The production possibility frontier for toothpaste and hair spray shows all the combinations of toothpaste and hairspray that the economy is capable of producing.
c) In a growing economy, the production possibility frontier moves inward.
d) If GDP goes up, that always means the economy is growing.
e) From 2006 to 2007 real GDP grew faster than GDP.
f) A growing economy means that all components of GDP are increasing.
g) Two of the forces driving growth are increases in knowledge and increases in labor.
h) The Golden Age of productivity growth ran from roughly the end of World War II to the mid-1970s.
i) The arrival of the Internet helped spur an increase in productivity growth.