Suppose that growth in output that can be attributed to growth in labor and capital is 2%. If output grows at a rate of 5%, it must be the case that
A. growth in capital exceeds growth in labor.
B. the economy is experiencing technological progress.
C. the economy is not spending enough on acquiring human capital.
D. growth in labor exceeds growth in capital.
Answer: B
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Scarcity refers to the situation in which
A) unlimited wants exceed limited resources. B) a country's population is larger than its resource base. C) a nation's poverty level increases faster than its population. D) unlimited resources exceed limited wants.
Which of the following would shift the demand curve for cars to the right?
A. An increase in the federal funds rate B. An increase in discount lending by the Fed to banks C. An increase in the unemployment rate over the NAIRU D. An increase in home mortgage interest rates
Sarah spends $100 a year on magazines and ice cream. The table above shows her utility from each good. If the price of a magazine is $5 and the price of ice cream is $5 per gallon, how does Sarah spend the $100?
What will be an ideal response?
If a person who weighs 100 lbs. is riding in an elevator and is joined by a person weighing 120 lbs., what happens to the average weight of persons on the elevator?
A. It falls. B. It rises. C. It stays the same.