Using the growth accounting equation, if the growth rate of output is 5%, the growth of labor is 2% and the growth of capital is 2% then if α=0.50 then growth of technology can be estimated to be:
A. 4.25%.
B. 4.00%.
C. 3.00%.
D. 4.75%.
C. 3.00%.
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A firm produces 60 units of output with 5 workers, 65 units with 6 workers, and 68 units with 7 workers. The firm's production function exhibits diminishing marginal productivity between 5 and 7 workers
a. True b. False Indicate whether the statement is true or false
Refer to the graph shown. According to the globalized AS/AD model, which world aggregate supply curve best represents the 2000s?
A. WAS0, and the United States had a large trade surplus. B. WAS1, and the United States had a small trade deficit. C. WAS2, and the United States had a small trade surplus. D. WAS3, and the United States had a large trade deficit.
The purchase of less than 10 percent of the shares of ownership in a company in another country is known as
A. a hostile takeover. B. foreign direct investment. C. portfolio investment. D. dead capital investment.
Refer to Table 2-12. Honduras has a comparative advantage in the production of
A) sailboats. B) canoes. C) both products. D) neither product.