what is the likely impact of this event on the gross domestic product and gross national product of the United States?

A. Increases in the amount of human capital in the economy tend to _________ real incomes because they increase the _________ of labor.


a. increase; bargaining power

b. increase; productivity

c. decrease; bargaining power

d. decrease; productivity

B. Most economists are _________ that natural resources will eventually limit economic growth. As evidence, they note that the prices of most natural resources, adjusted for overall inflation, have tended

to _________ over time.

a. concerned; rise

b. concerned; fall

c. not concerned; rise

d. not concerned; fall

C. Because capital is subject to diminishing returns, higher saving and investment do not lead to higher

a. income in the long run.

b. income in the short run.

c. growth in the long run.

d. growth in the short run.

D. When the Japanese car maker Toyota expands one of its car factories in the United States, what is the likely impact of this event on the gross domestic product and gross national product of the United States?

a. GDP rises and GNP falls.

b. GNP rises and GDP falls.

c. GDP and GNP both rise but GDP rises by more.

d. GDP and GNP both rise but GNP rises by more.

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