In the Solow model, which of the following is an exogenous variable?
A) productivity
B) the capital-labor ratio
C) consumption per worker
D) investment per worker
A
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Which of the following groups believes that stabilization policy can have some short-run success, but cannot sustain that success into the long run?
a. classical school b. Keynesian school c. neo-Keynesian school d. rational expectations school e. supply-side school
Which of the following best describes the conditions during the Great Depression?
What will be an ideal response?
Ideally, a price system allows
A. government policy makers to allocate resources to the uses which they consider to be in the best interests of society. B. resources to move from lower-valued uses to higher-valued uses through voluntary exchange. C. consumers to satisfy all their wants. D. firms to act in such a way that they eliminate scarcity.
Refer to Scenario 9.6 below to answer the question(s) that follow. SCENARIO 9.6: Celeste borrowed $40,000 from her brother to open a car wash. She pays her brother a 5% yearly return on the money he lent her. Her other yearly fixed costs equal $18,000. Her variable costs equal $40,000. In her first year, Amy sold 40,000 car washes at a price of $2.50 per car wash.Refer to Scenario 9.6. Celeste's total fixed costs equal
A. $2,000. B. $18,000. C. $20,000. D. $22,000.