What does the Cobb-Douglas production function assume about the input shares in the economy?
A) the capital share is larger than the labor share of income
B) both the capital and labor shares of income grow over time
C) both the capital and labor shares of income remain relatively constant over time
D) the capital share of income is equal to the labor share of income
E) none of the above
C
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The M2 money supply
a. includes large denomination time deposits which are part of M1 b. excludes checking accounts which are part of M1 c. does not include money market mutual accounts because they are part of M1 d. includes demand deposits and small denomination time deposits because each ispart of M 1and M2, respectively e. includes large denomination repurchase agreements which are part of M1
The price received by sellers in a market will decrease if the government
a. increases a binding price floor in that market. b. increases a binding price ceiling in that market. c. decreases a tax on the good sold in that market. d. None of the above is correct.
As a result of a shortage,
A. Consumers increase demand for the product. B. Producers increase output and raise price. C. Government purchases decrease. D. Producers reduce supply.
Political instability is an impediment to development mainly because it:
A. undermines both domestic and foreign investment in a developing country. B. creates cultural and social differences among groups in developing countries. C. produces excessive levels of domestic saving. D. redistributes income.