The Soviet Union consistently increased the amount of capital available to its workers, but found that increases in capital resulted in progressively smaller and smaller increases in GDP per worker. This phenomenon is referred to as
A) diminishing returns to capital. B) a rising standard of living.
C) new growth theory. D) a shift of the per-worker production function.
A
You might also like to view...
We can draw demand curves for firms in perfectly competitive and monopolistically competitive industries, but not for oligopoly firms. The reason for this is
A) perfectly competitive and monopolistically competitive firms sell standardized products. Oligopoly firms sell differentiated products. B) there are no barriers to entry in perfectly competitive and monopolistically competitive industries. There are high barriers to entry in oligopoly industries. C) we can assume that the prices charged by perfectly competitive and monopolistically competitive firms have no impact on rival firms. For oligopoly this assumption is unrealistic. D) that perfectly competitive and monopolistically competitive firms are price takers. Oligopoly firms are price makers.
The rule of 70 estimates how long it will take a country to double its real GDP per capita by:
A. dividing the average growth rate by 70. B. dividing 70 by the average growth rate. C. dividing the current real GDP per capita by 70. D. multiplying the average growth rate by 70 percent.
If the economy is in equilibrium at less than full employment, Keynesian economists would recommend that the government
a. do nothing b. pursue fiscal policy to stimulate aggregate demand c. pursue fiscal policy to stimulate aggregate supply d. balance the budget e. cut government spending to eliminate deficit spending
Serious environmental problems are
a. unique to industrial economies. b. unique to Western economies. c. unique to civilized economies (i.e., those in which people live mainly in cities). d. None of the above is correct.