An increase in the capital stock
A. can increase output, but only if it is accompanied by an increase in the labor force.
B. cannot increase output, even if it is accompanied by an increase in the labor force.
C. provides valuable services directly, but not indirectly.
D. can increase output, even if it is not accompanied by an increase in the labor force.
Ans: D. can increase output, even if it is not accompanied by an increase in the labor force.
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An intermediate good is a good that is
A) neither normal nor inferior. B) used as an input. C) a stand-in for all goods. D) is tangible good that includes substantial services.
In the long run, a monopolistic competitor will
a. always produce at minimum efficient scale b. produce too little output to achieve minimum cost per unit c. use limit pricing to forestall competition d. earn economic profits e. standardize its product
The information technology revolution seems to have had its greatest positive effect on labor productivity growth in the ____ period
a. 1948-1973 b. 1973-1995 c. 1995-2005 d. 1948-2005
Ceteris paribus, a decrease in the demand for automobiles will
a. increase the price of automobiles. b. increase the quantity supplied of automobiles. c. decrease the demand for automobile workers. d. increase the demand for automobile workers.