Steady-state investment per worker is positively related to the capital-labor ratio because the higher the capital-labor ratio,
A. the less the economy needs to equip new workers with the same high level of capital.
B. the greater the amount of resources available for capital investment.
C. the more investment per worker is required to replace depreciating capital.
D. the lower the capital depreciation rate.
Answer: C
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What happens to the price of the product and total revenue for a perfectly competitive firm if it doubles the amount of output it supplies in the market?
Union membership has fluctuated during the last several decades. Which of the following statements best describes the effect of unions on the share of total output allocated to labor?
a. The share of output going to labor has been virtually constant, even though union membership as a share of the labor force has fluctuated. b. The share of total output going to labor has followed the same pattern as the business cycle in recent years. c. The share of total output going to labor rose as union membership rose from 1945 to 1960 and fell as union membership declined during the 1960 through 2000 period. d. The share of total output going to labor has increased substantially, even though during the last several decades union membership has declined.
Those who have more faith in self-correcting forces of the economy subscribe to the passive approach of economy
Indicate whether the statement is true or false
Laboratory experiments of the ultimatum games revealed that
A) participants' actions were always part of a Nash equilibrium. B) participants always split the money equally. C) the first mover always kept the smaller share. D) the first mover always kept the largest share.