There tends to be a high positive correlation between the rate of productivity growth and the rate of economic growth.
Answer the following statement true (T) or false (F)
True
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David takes 10 minutes to process a customer, and 20 minutes to stock the shelves. Danny takes 15 minutes to process a customer, and 15 minutes to stock the shelves. Which of the following statements is true?
A) Danny has a comparative advantage in processing customers and in stocking shelves. B) David has a comparative advantage in processing customers but not in stocking shelves. C) Danny has an absolute advantage in performing both tasks. D) Danny has a comparative advantage in processing customers but not in stocking shelves. E) David has an absolute advantage in performing both tasks.
Firms can only use one form of price discrimination
Indicate whether the statement is true or false
Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the GDP Price Index and net nonreserve international borrowing/lending balance in the context of the Three-Sector-Model? a. The GDP Price Index rises and net nonreserve
international borrowing/lending balance becomes more positive (or less negative). b. The GDP Price Index rises and net nonreserve international borrowing/lending balance becomes more negative (or less positive). c. The GDP Price Index falls and net nonreserve international borrowing/lending balance becomes more positive (or less negative). d. The GDP Price Index and net nonreserve international borrowing/lending balance remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Suppose the economy experiences a recessionary gap. Policymakers who believe that government is too big would favor which of the following policies to close the gap?
A) decreases in transfer payment B) decreases in income tax rates C) increases in government purchases D) increases in interest rates