A person who is risk averse might accept a 50% chance of losing $100 today in exchange for a 50% chance of winning $125 in two years if the interest rate was
a. 9% but not 10%
b. 10% but not 11%
c. 11% but not 12%
d. None of the above is correct; a risk averse person would not accept any of the above bets.
c
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Everything else equal, technological change will typically
a. move the economy along a fixed production function, increasing both productivity and output b. move the economy along a fixed production function, increasing output but lowering productivity c. cause the production function to shift upward, increasing both output and productivity d. cause the production function to shift upward, increasing output but lowering productivity e. cause the production function to shift upward, increasing output but leaving productivity unchanged
Like real GDP, investment fluctuates, but it fluctuates much less than real GDP
a. True b. False Indicate whether the statement is true or false
China's economic growth and emergence as a major exporter was assisted by
A. opening the country to foreign direct investment (FDI). B. restricting inflows of FDI. C. exploiting a comparative advantage in primary products. D. the use of inward-oriented policies.
Refer to the information above. Which of the following represents the amount of investment per effective worker needed to maintain a constant level of capital per effective worker (K/NA)?
A) .02(K/NA) B) .03(K/NA) C) .05(K/NA) D) .13(K/NA) E) .16(K/NA)