The idea that investment in comprehensive education in developing countries leads to permanent increases in the rate of technological progress is an example of
A) a trade-off between human capital and technology.
B) increasing economic inequality.
C) capital deepening.
D) new growth theory.
D
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The curve that shows the demand for labor for a purely competitive firm is
A) VMP. B) MP. C) MC. D) W/MP.
The Coase theorem states that, in the presence of cost externalities, an optimal equilibrium can be attained
A) with government taxation. B) by prohibiting production. C) by correctly defining property rights and through negotiation between the parties. D) None of the above
As price increases, additional suppliers are willing to produce a commodity
a. True b. False Indicate whether the statement is true or false
Suppose a bank in Germany borrows $2 million U.S at an interest rate of 5%. The bank then converts the amount into euros, the local currency, at a rate of 2 euros per dollar. It lends the €4 million at an interest rate of 15% to other firms. After one year, the loan is repaid with interest, and the bank receives €4.6 million. The bank now wants to pay back the debt. If the current exchange
rate is 3 euros per dollar, the bank will: a. face a loss of $570,000 approximately. b. face a loss of $470,000 approximately. c. make a profit of $500,000 approximately. d. make a profit of $320,000 approximately.