Refer to Figure 13A.2. If the economy were originally saving at the rate s1 but changed to the rate s2:
A. depreciation will not catch up to total saving.
B. capital deepening will continue past K2.
C. saving exceeds depreciation at K1.
D. the economy stops growing at e1.
Answer: C
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Land used to grow corn could also be used to grow soybeans. Which of the following is true when the farmer plants soybeans and the market price of corn rises?
a. The opportunity cost of producing soybeans decreases. b. The opportunity cost of producing soybeans increases. c. There will be no change in the opportunity cost of producing soybeans. d. The opportunity cost of producing corn increases.
Which one of the following is not correct?
A. In antitrust cases defendants attempt to define the relevant market broadly. B. The courts have varied over time in their interpretations of the antitrust statutes. C. Antitrust suits can only be originated by the Federal Trade Commission. D. In antitrust cases the prosecution attempts to define the relevant market narrowly.
A person's utility schedule ____________ (can/cannot) change over time.
Fill in the blank(s) with the appropriate word(s).
The formula q/L represents
A. the average product of labor. B. the marginal product of labor. C. the capital-to-labor ratio. D. total product.