Assume that an economy experiences both positive population growth and technological progress. Once the economy has achieved balanced growth, we know that the output per worker ratio (K/N) is
A) constant.
B) growing at a rate of gA - gN.
C) growing at a rate of gN.
D) growing at a rate of gA.
E) growing at a rate of ? + gA + gN.
D
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Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has 400 workers. Two possible consumption bundles that Country B could produce are:
A. (7,200 bananas, 2,400 tomatoes) and (3,600 bananas, 1,200 tomatoes) B. (7,200 bananas, 0 tomatoes) and (4,000 bananas, 1,200 tomatoes) C. (3,600 bananas, 1,200 tomatoes) and (1,800 bananas, 1,600 tomatoes) D. (1,800 bananas, 1,800 tomatoes) and (900 bananas, 2,200 tomatoes)
The Mansfield Public Library has a large number of books that anyone with a library card may borrow. Anyone can obtain a card for free. Because the number of copies of each book is limited, not everyone can have the same book at the same time. What type of good would the library books be classified as in this case?
a. private goods b. club goods c. common resources d. public goods
Real GDP differs from nominal GDP in that nominal GDP measures
A. output adjusted for inflation. B. real output of goods and services. C. output of goods and services at current prices. D. real income adjusted for changes in the price level.
A consumer holds money to meet spending needs. This would be an example of the:
A. Use of money as a measure of value B. Use of money as legal tender C. Transactions demand for money D. Asset demand for money