Because of its effect on the amount of capital per worker, in the short term an increase in the working population is likely to
a. raise productivity. Other things the same, this increase will be larger in a poor country.
b. raise productivity. Other things the same, this increase will be larger in a rich country.
c. reduce productivity. Other things the same, this decrease will be larger in a poor country.
d. reduce productivity. Other things the same, this decrease will be larger in a rich country.
c
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The physical and mental effort people use to produce goods and services is a description of which factor of production?
A) physical capital B) labor C) entrepreneurship D) human capital
One explanation that economists give for the persistence of poverty in LDCs falls under the category of nonscientific perceptions. An example of this is people in LDCs who
a. are unwilling to devote their energies to intellectual pursuits b. don't share the values associated with the means to acquire or the acquisition of the materialist world commonly identified with Westerners c. are not rational, utility-maximizing, economic agents d. value their children e. because of climate, require a lower calorie diet to survive
José is putting money for college in a savings account. The bank then makes this money available to business borrowers. In essence:
a) José is supplying loanable funds for business investment. b) José is demanding loanable funds. c) The interest rates that businesses pay are independent of the actions of suppliers of funds, such as José. d) Financial markets are not performing the role of an intermediary.
When a market clearing price is determined
A) the exchange between buyers and sellers is voluntary. B) the exchange between buyers and sellers is directed by outside factors such as the government. C) the exchange between buyers and sellers benefits only the buyers. D) the exchange between buyers and sellers benefits only the sellers.