The Classical growth model argues that markets are an impediment to growth because they lead to unequal distribution of income.
Answer the following statement true (T) or false (F)
False
Markets allow specialization and division of labor, which leads to higher productivity and more growth.
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Fill in the blank: Rebecca goes to the hairdresser more often now that her salary has increased. For Rebecca, the hairdresser's service is probably ________
A) a normal good B) an inferior good C) a free good D) a bad
If the marginal cost of the 100th unit is $3.25, the total cost of producing 100 units is $825, and the fixed cost is $500,
A. average variable cost is higher than marginal cost. B. marginal cost is falling. C. average variable cost is at its minimum. D. average total cost is increasing.
The key region of the brain for principal decision making is the:
A. insular cortex. B. amygdala. C. Nucleus Accumbens (NAcc). D. prefrontal cortex (PFC).
When output increases by 1%, the number of jobs does not tend to rise by 1% in the short run. Which of the following statements represents one of the reasons why this is true?
A. Firms are likely to meet some of the increase in output by reducing labor productivity. B. A firm is likely to meet some of the increase in output by decreasing the number of hours worked per job. C. Firms are likely to meet part of the increase in output by eliminating any excess capital they may have. D. A firm is likely to meet some of the increase in output by increasing the number of hours worked per job.