Discuss that factors that help explain the rapid productivity growth in the United States after 1995.
What will be an ideal response?
The following factors help explain the surge in productivity:Surging Investment: New business opportunities in the IT sector and elsewhere, coupled with a strong national economy, led to a surge in business investment spending in the 1990s.Energy Prices: For part of this period, especially the years 1996–1998, energy prices were falling. Note that productivity continued to surge in the early years of this decade, after energy prices had started to rise.Advances in Information Technology: Computers became faster and much, much cheaper as did telecommunications equipment and services. The Internet and corporate intranets became commonplace. Some also point out that it probably took American businesses some time to learn how to use the computer and telecommunications technologies that were invented and adopted between, say, 1980 and the early 1990s.
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The short-run effect of an increase in the supply of money is
A) an increase in the price level, a decrease in real Gross Domestic Product (GDP), but an increase in nominal national income. B) an increase in the price level but not in real Gross Domestic Product (GDP). C) an increase in both real Gross Domestic Product (GDP) and the price level. D) an increase in real Gross Domestic Product (GDP) but not in the price level.
Answer the following statements true (T) or false (F)
1. Market demand and the firm’s demand curve coincide in a monopoly. 2. The AR and MR curves of a monopoly are identical. 3. A monopoly can sell all that it desires at any given price. 4. The demand for the product of a monopolist is perfectly inelastic. 5. A monopoly cannot suffer a loss.
If the income elasticity of demand for a Snickers bar is 0.59, then we know that within the relevant price range for Snickers bars, it is
a. price elastic b. price inelastic c. income inelastic d. income elastic e. according to the economist's definition of inferior, an inferior good
Which statement is accurate concerning the early history of globalization around the time of WWI?
a. In the decades before the war, international trade decreased steadily due to the colonial system. b. In the years after the war, rebuilding international trade was hampered most by the Nazi invasion of Europe. c. After the war, Great Britain's position was so strengthened that it could convince others to lower trade barriers. d. During the war, many trading relationships were destroyed, as trading partners became military adversaries.