In the Solow growth model, the law of motion of capital takes into account
A) the residential nature of houses.
B) the mobility of capital.
C) the depreciation of old capital.
D) the cost of shipping and installing capital.
C
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
In an effort to clean up the amount of sulfates introduced into the atmosphere the government has ruled that all polluters install smoke stack scrubbers on their smoke stacks and mandated a pollution limit on the amount of sulfates per parts of air
that may be legally emitted into the atmosphere. Suppose some of the polluters have found a more efficient way to eliminate the pollution. How will this discovery change the amount of sulfates emitted into the atmosphere?
When sellers have better information about product quality than do buyers, lower-quality products tend to become more common in the market
a. True b. False
The fact that there are fewer and fewer potential investments that will generate returns high enough to make the cost of paying back a loan worthwhile is reflected in the:
A. downward-slope of the demand curve in the market for loanable funds. B. upward-slope of the demand curve in the market for loanable funds. C. downward-slope of the supply curve in the market for loanable funds. D. upward-slope of the supply curve in the market for loanable funds.