A small increase in the annual rate of economic growth can lead to a larger increase in growth over time due to the effects of
A) the money supply.
B) compounding.
C) regression towards the mean.
D) averaging.
B
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A firm is likely to pay higher efficiency wages when:
A) it is easy to monitor workers. B) it is not easy to monitor workers. C) workers do not have a tendency to shirk at work. D) the minimum wages are set above the equilibrium wage rate.
When taxes are levied on transactions, irrespective of the party they are levied on,
a. The government can absorb all the consumer surplus from the transactions as revenue b. The government can absorb all the producer surplus from the transactions as revenue c. The government can absorb some of the surplus, but also creates a social loss since some of the wealth creating transactions are discouraged d. The government can absorb all of the surplus (producer and consumer)
Historical evidence suggests that monopolization of particular industries had led to lower prices. In such cases the monopolists had reduced profit to increase welfare
Indicate whether the statement is true or false
Firms will ________ a monopolistically competitive market until ________ are eliminated.
A. exit; long-run profits B. exit; losses C. enter; losses D. exit; short-run profits