Two countries are the same, except one is poorer. Assuming the traditional assumption about the production function is made there are
a. diminishing returns to capital so the poor country grows slower.
b. increasing returns to capital so the poor country grows slower.
c. diminishing returns to capital so the poor country grows faster.
d. increasing returns to capital so the poor country grows faster.
c
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If corn and soybean are alternative crops grown by most farmers, an increase in the price of corn, other things constant, is likely to:
a. increase the supply of corn. b. ?increase the supply of soybeans. ? c. decrease the supply of soybeans. ? d. decrease the supply of corn. ? e. decrease the demand for soybeans.
An index of the weighted exchange value of the U.S. dollar versus the currencies of a broad group of major U.S. trading partners is called the trade-weighted dollar
Indicate whether the statement is true or false
If the value of a dollar falls, then the quantity of money demanded
a. rises, meaning people want to hold more of their wealth in a liquid form. b. rises, meaning people desire to work more so their income rises. c. falls, meaning people want to hold less of their wealth in a liquid form. d. falls, meaning people want to work less so their income falls.
Expectations that the price level will decrease in the future will _____
Fill in the blank(s) with the appropriate word(s).