If the actual capital-labor ratio is below the steady-state capital labor ratio, growth from convergence will be ________, and the economy will grow ________ than it will along a balanced growth path
A) negative; slower
B) negative; faster
C) positive; slower
D) positive; faster
D
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Which of the following is one of the most important benefits of money in an economy?
a. Money allows for the exchange of goods and services. b. Money allows for the accumulation of wealth. c. Money makes exchange easier, leading to more specialization and higher productivity. d. Money encourages people to produce all of their own goods (self-sufficiency) and therefore increases economic stability.
Real income can be measured by
A) the slope of the budget line. B) the area under the budget line. C) the length of the budget line. D) an intercept of the budget line.
An example of a bilateral monopoly would be when a union
A) bargains with many different employers. B) deals directly with the final consumers. C) bargains with a monopoly. D) bargains with a monopsony.
The most famous hyperinflation was in ________ between August 1922 and November 1923, when inflation averaged 322 percent per month
a. U.S. b. Japan c. Germany d. Israel