One plausible explanation of the U.S. productivity slowdown starting in 1973 is that it was a result of the increase in the relative price of energy. This explanation would require that, in light of higher energy costs, the
A) capital stock is overestimated.
B) capital stock is underestimated.
C) labor force is overestimated.
D) labor force is underestimated.
A
You might also like to view...
The primary function of the reserve requirements imposed by the Fed upon commercial banks is to
A) assure that Federal Reserve Banks will receive deposits with which they can purchase income-earning assets. B) enable the government to borrow in emergencies. C) protect the liquidity of the banking and monetary system. D) protect the solvency of the commercial banking system. E) serve as a control lever for central banking authorities.
Which of the following is not a public good?
A. A coastal lighthouse B. National defense C. A flood-control levee D. The latest Walt Disney movie
If the marginal cost of producing the next unit of output exceeds the average total cost, then:
A. the average total cost curve is increasing. B. the marginal cost curve is at its minimum. C. the average total cost curve is decreasing. D. the average total cost curve is at its minimum.
An ad valorem sales tax can be thought of as
A. not part of the tax base. B. a progressive tax. C. a proportional tax. D. none of these.