In the very long run, theoretically there will be equilibrium if capital and labor are free to migrate. If and when this ever happens, what will the global economy experience?
a. an equality of wages and marginal product
b. an equality of returns to the owners of capital
c. a fully Paretoefficient world economy with the highest standard of living possible
d. an equality of wages and marginal product, an equality of returns to the owners of capital, and a fully Paretoefficient world economy with the highest standard of living possible
Ans: c. a fully Paretoefficient world economy with the highest standard of living possible
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Theoretically, the price of a field hand on the New Orleans slave market would have
a. varied directly with the price of cotton. b. risen as interest rates fell. c. risen when the importation of slaves became illegal. d. All of the above are true.
The principal result of the rising value of the U.S. dollar in the mid-1990s was a(n)
a. balance of payments deficit. b. balance of payments surplus. c. increase in the rate of inflation. d. increase in the unemployment rate.
A ________ is a person who wants to enjoy the benefits of a public good without contributing his or her marginal benefit to the cost of financing the amount made.
A. free rider B. politician C. price maker D. price optimizer
How does Fisher’s quantity theory of money differ from the Keynes quantity theory of money?
What will be an ideal response?