When the price level falls
a. households want to lend less.
b. the interest rate rises.
c. firms want to spend less on investment goods.
d. None of the above are correct.
d
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In the endogenous growth model presented in the text, an increase in the fraction of time accumulating human capital
A) increases the growth rate of human capital and increases the growth rate of output. B) increases the growth rate of human capital and decreases the growth rate of output. C) decreases the growth rate of human capital and increases the growth rate of output. D) decreases the growth rate of human capital and decreases the growth rate of output.
White-collar employment has risen sharply since the introduction of computers, so clearly the
A. output effect has outweighed the substitution effect. B. substitution effect has outweighed the output effect. C. substitution and output effects are equal.
The amount of output produced by an average worker in one hour is
A. the marginal product of labor. B. labor productivity. C. the marginal revenue product of labor. D. a production quota.
Refer to Figure 5-6. Why is there a deadweight loss?
A) because the marginal private cost for each additional unit between Q1 and Q2 exceeds the marginal private benefit B) because the marginal private benefit for each additional unit between Q1 and Q2 exceeds the marginal cost C) because the marginal social cost for each additional unit between Q1 and Q2 exceeds the marginal social benefit D) because the marginal social benefit for each additional unit between Q1 and Q2 exceeds the marginal cost