Refer to Figure 13A.1. Capital deepening occurs as long as:
A. total saving exceeds depreciation.
B. depreciation exceeds total saving.
C. total saving and depreciation are equal.
D. the level of Y is increasing.
Answer: A
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Efficiency is best understood as a relationship between
A) ends and means. B) energy created and energy destroyed. C) energy output and energy input. D) pleasure and pain.
Over time in a growing economy, the long-run aggregate supply curve will
A) become horizontal at the long-run potential price level. B) shift rightward. C) shift leftward. D) become increasingly steep.
If the price is above the equilibrium price then there is a _______________.
Fill in the blank(s) with the appropriate word(s).
Which of the following is true in a market economy?
A. Central planners determine answers to the basic economic questions. B. Resources are used efficiently. C. The distribution of wealth is equal. D. Information for production and distribution decisions pass directly to buyers from the government.