During the Black Plague, capital became worthless. What can explain this?
A) Capital's marginal product fell because there was less labor.
B) Capitalists died off at a greater rate than the workers.
C) Capital's marginal product increased but the marginal product of labor decreased.
D) Workers forgot how to use the capital.
A
You might also like to view...
As income rises ________
A) the number of transactions households and firms undertake should increase B) wealth also rises C) demand for real money balances should increase D) all of the above E) none of the above
Which of the following countries have used adjustments to the required reserve ratio as a primary tool of monetary policy?
A. United States B. India C. Mexico D. China
If we consider the reality that each worker has different skills, then the production possibilities frontier
A. cannot be drawn, as too many variables would need to be taken into consideration. B. would display an increasing opportunity cost of a good as more of that good is produced. C. would display a decreasing opportunity cost of a good as more of that good is produced. D. would display a constant opportunity cost of a good as more of that good is produced.
The aggregate demand curve shows that when the price level rises, the quantity of real GDP demanded decreases.
Answer the following statement true (T) or false (F)