Which of the following would encourage economic growth through increases in the capital stock?
A) an increase in the profitability of new investment due to technological change
B) an increase in household saving
C) a decrease in the government deficit
D) all of the above
Answer: D
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A decrease in the price of inputs will cause the supply curve for a product to shift to the right
Indicate whether the statement is true or false
Contestability of markets depends crucially upon
a. the nationalization of these markets b. large economies of scale c. strong brand loyalty for existing firms d. the presence of natural monopoly e. the ability of new firms to enter the market
In a fully contestable market, a monopoly firm's profits are
a. limited to a competitive level b. negative c. higher than a competitive market d. set by a regulatory commission e. not affected by the firm's costs
In a country with a working-age population of 22 million, 16 million are employed, 2 million are unemployed, and 1 million of the employed are working part-time, half of whom wish to work full-time. If 500,000 of those unemployed are cyclically unemployed, what is the natural unemployment rate?
A) 9.4 percent B) 11.1 percent C) 5.6 percent D) 8.3 percent E) none of the above