What is break-even investment, and what happens to the break-even level of investment when the growth rate of the labor force either increases or decreases?

What will be an ideal response?


Break-even investment is the level of investment necessary to keep the capital—labor ratio constant. The break-even level of investment will rise when the growth rate of the labor force increases and will fall when the growth rate of the labor force decreases.

Economics

You might also like to view...

An increase in the labor force participation rate

A) means there are more discouraged workers. B) implies that the unemployment rate must fall. C) implies that the unemployment rate must rise. D) is consistent with either a rise or a fall in the unemployment rate.

Economics

If a commercial bank has assets valued at $200 million and a net worth of $20 million, what is the value of the bank's liabilities?

a. There is not enough information to determine. b. $20 million c. $220 million d. $180 million e. $200 million

Economics

The practice of charging customers different prices for the same good is called:

A. price marking. B. customer discrimination. C. group discounting. D. price discrimination.

Economics

The formula  is the

A. federal funds rate. B. potential money multiplier. C. actual change in the money supply. D. discount rate.

Economics