An economy of 80 million people has ten percent of them engaged in research and development, where their productivity is 0.0035
The economy is on a balanced growth path, when suddenly 2.88 million people move from goods production into R&D, raising the fraction there to 13.6 percent. In the one period that begins with this labor reallocation, the growth rate of output is ________. [Refer to the instruction above.]
A) 2.8%
B) 0.0%
C) 3.8%
D) 2.2%
D
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Because more than half the federal welfare budget goes for health care, almost zero U.S. residents lacked health insurance in 2006
a. True b. False
Tom walks Bethany's dog once a day for $50 per week. Bethany values this service at $60 per week, while the opportunity cost of Tom's time is $30 per week. The government places a tax of $35 per week on dog walkers. After the tax, what is the total surplus?
a. $50 b. $30 c. $25 d. $0
A city street is
a. always a public good, whether or not it is congested. b. a public good when it is congested, but it is a common resource when it is not congested. c. a common resource when it is congested, but it is a public good when it is not congested. d. always a common resource, whether or not it is congested.
The adjustment of nominal incomes to changes in the price level (CPI) is fixed because of the:
a. complete information possessed by workers. b. volatility of investment spending. c. existence of long-term contracts. d. all of these choices.