Steady-state investment per worker is positively related to the capital—labor ratio because the higher the capital—labor ratio
A) the lower the capital depreciation rate.
B) the greater the amount of resources available for capital investment.
C) the more investment per worker is required to replace depreciating capital.
D) the less the economy needs to equip new workers with the same high level of capital.
C
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Nonlinear price discrimination
A) sets the price consumers pay based on quantity purchased. B) is where the firm sets prices in geometrically or exponentially decreasing price points. C) is used in situations where consumers have no reservation prices. D) eliminates deadweight loss.
An example of adverse selection is a. purchasing a new car sight unseen based on the recommendation of a neighbor. b. high health-insurance premiums resulting from the poor health of people who buy policies
c. suppliers who charge more for better quality clothing than for lower quality clothing. d. being talked into buying a low-quality item because the price is lower.
The following figure shows the domestic demand (Dd) and domestic supply (Sd) curves of mopeds in a country before an import quota is imposed by the government. After the imposition of the quota, the maximum import quantity is QQ.
After the quota is imposed, the domestic consumers
A. lose $22.5 million. B. gain $52.5 million. C. lose $82.5 million. D. lose $7.5 million.
Recall the Application about the time involved in including cell phones in the calculation of the Consumer Price Index (CPI) to answer the following question(s).According to the Application, if the telecommunications component of the Consumer Price Index (CPI) was biased upward by 1.9 percent, then if increase in telecommunications prices were measured at 1.1 percent, then in reality, telecommunication prices:
A. decreased by 0.8 percent. B. increased by 3 percent. C. increased by 0.8 percent. D. decreased by 3 percent.