What is most likely to occur when rapid population growth leads to lower capital stock per worker?
a. The standard of living will rise.
b. Economic growth will increase.
c. Total output will decrease.
d. Labor productivity will decrease.
d. Labor productivity will decrease.
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When an American buys stock in a French company, from the perspective of the United States, this is a(n):
A. export. B. capital inflow. C. import. D. capital outflow.
The aggregate production function is an equation that shows the relationship between ________ and ________
A) the inputs employed by firms; the maximum output firms can produce with those inputs B) the inputs employed by an individual firm in an economy; the average of the inputs employed by all firms in an economy C) the output produced by an individual firm in an economy; the average of the output produced by all firms in an economy D) the average level of capital used in production in an economy; the average level of labor used in production in an economy
Refer to the above figure. S1 is the supply curve that includes only private costs. S2 is the supply curve that includes social costs. From this figure we know that
A) an external benefit exists. B) private costs are less than social costs. C) private costs equal social costs. D) private costs are greater than social costs.
Government policy to reduce unemployment and increase national output can be illustrated by an
A. outward shift of the aggregate demand curve caused by an increase in government spending. B. outward shift of the aggregate supply curve caused by a reduction in government spending. C. inward shift of the aggregate demand curve caused by an increase in government spending. D. inward shift of the aggregate supply curve caused by a reduction in government spending.