Alpha has $40,000 of capital per worker, while Beta has $5,000 of capital per worker. In all other respects, the two countries are the same. According to the principle of diminishing returns to capital, an additional unit of capital will ________ in Alpha compared to Beta, holding other factors constant.
A. increase output by the same amount
B. increase output less
C. have no effect on output
D. increase output more
Answer: B
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Due to capacity constraints, the price elasticity of supply for most products is:
A) the same in the long run and the short run. B) greater in the long run than the short run. C) greater in the short run than in the long run. D) too uncertain to be estimated.
The balance on current account records information about: a. purchases of U.S. financial assets by foreigners
b. purchases of foreign financial assets by Americans. c. the levels of imports and exports of goods and services for a country. d. foreign investments in U.S. bonds, stocks, and other items.
Which of the following would not be considered a boom period as measured by the percentage growth rate of U.S. output of goods and services?
A. the Roaring 20s B. the conversion from a wartime to a peacetime economy following World War II C. World War II D. the late 1990s
Reducing protectionism allows greater gains from free trade.
Answer the following statement true (T) or false (F)