In the Solow growth model, given the values of A, s, n, and d, the economy has an equilibrium growth rate of real GDP equal to
A) s.
B) n.
C) n + d.
D) n - d.
E) s - d.
B
You might also like to view...
All people in the working-age population can be divided into
A) labor force participants. B) employed, unemployed, or not in the labor force. C) either over-employed or under-employed. D) potential employees.
If a natural monopoly is regulated using the marginal cost pricing rule, how does the regulation affect prices, outputs, profits, and the distribution of surpluses? What are the pros and cons to this method of regulation?
What will be an ideal response?
The ability to lower the average costs of production as the quantity produced increases is called
a. Economies of scale b. Economies of scope c. Diseconomies of scale d. Diseconomies of scope
State three reasons for a potentially beneficial role of government intervention.
A. Creating barriers to entry to promote market efficiency. B. Providing public goods. C. Restraining trade so prices rise. D. Correcting informational problems. E. Generating a government failure to affect market pricing. F. Offsetting the incentive effect provided by wages. G. Correcting for negative or positive externalities.