The countries with the lowest output per capita
A) are rich with human capital, but have little physical capital.
B) are rich with physical capital, but have little human capital.
C) are poor in both human and physical capital.
D) have low living standards in spite of relatively high levels of both human and physical capital.
E) may or may not be poor in human capital, depending on whether the exchange rate or purchasing power parity method is used for comparison.
C
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The per-worker production function is ________
A) upward-sloping B) downward-sloping C) vertical D) horizontal
Assume that business investment spending rises, and the increase is funded by greater borrowing in the capital markets. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the nominal exchange rate and monetary base in the context of the Three-Sector-Model? a. The nominal exchange rate rises and monetary base rises
b. The nominal exchange rate remains the same and monetary base falls. c. The nominal exchange rate remains the same and monetary base rises. d. The nominal exchange rate and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Microeconomics and macroeconomics are closely linked
a. True b. False Indicate whether the statement is true or false
The concept that relates how much one variable changes as another variable changes is
A) slope. B) line. C) curve. D) graph.