In the neoclassical growth model, if two countries are exactly the same but one has a higher savings rate, we would expect that country to have
a. higher output, a higher capital-to-labor ratio, and higher output growth in the steady state.
b. higher output, a higher capital-to-labor ratio, and the same output growth in the steady state.
c. the same output and capital-to-labor ratio, but higher output growth in the steady state.
d. higher output, the same capital-to-labor ratio, and the same output growth in the steady state.
B
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An economy produces only 1,000,000 computers valued at $2,000 each. Of these, 200,000 are sold to consumers, 300,000 are sold to businesses, 300,000 are sold to the government, and 100,000 are sold abroad. No computers are imported. At the end of the year, the computer manufacturers hold the unsold computers in inventory. What is the value of the investment component of GDP?
A. $0.8 billion B. $0.3 billion C. $0.4 billion D. $0.6 billion
Health care costs have been rising due to
A) an aging population. B) new technologies. C) third-party financing. D) All of the above are correct.
Decreasing returns to scale is strictly a short run phenomenon for firms.
Answer the following statement true (T) or false (F)
Which of the following statements is not true?
A. There is a wage premium for investing in high levels of education. B. The wage premium of men and women college graduates has been increasing over time. C. Better-educated individuals are more productive. D. Public policy initiatives that support on-the-job training have been met with mixed results.