When a country adds more capital to its existing stock:
A. it experiences rapidly increasing rates of growth.
B. the additional productivity is less than the previous increases to productivity.
C. it experiences rapid declines in its level of income.
D. the additional productivity is more than the previous increases to productivity.
Answer: B
You might also like to view...
The consumer surplus enjoyed by the winner of a first-price sealed-bid auction is equal to the difference between ________
A) his value for the item being auctioned and the value of the lowest bid B) his bid and the second-highest bid C) his maximum willingness to pay for the good and his bid D) his bid and the market price of the item
The problem of economic scarcity applies
A) only in developed countries, because resources are scarce in these nations. B) only in underdeveloped countries, because there are no productive resources in these nations. C) only to an economy with an insufficient supply of money. D) to the economies of all nations, regardless of their level of development.
All of the following statements are true of the American economy since 1995, EXCEPT
A. technological change was the most important factor contributing to economic growth. B. Americans worked fewer hours per year in 1990 than they did in 2004. C. productivity rose by more than 3 percent in at least four years since 1995. D. the American savings rate was 0 percent in 2005.
Assume the standard trade model with two countries (Alpha and Beta), two goods (food and drink), and two factors of production (land and labor). Further assume that Alpha is relatively labor-abundant and food is relatively land-intensive. The no-trade wage rate relative to land rents in Alpha is ________ the relative wage rate in Beta.
A. double B. equal to C. greater than D. less than