Assume that the economy grows by 3 percent, total factor productivity grows by 2 percent, and the labor force grows at 2 percent. If labor contributes 40 percent to real GDP, then the stock of capital must have risen by 0.33 percent
a. True
b. False
Indicate whether the statement is true or false
True
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The market power for a firm in the Cournot model will be greater
A) if the market demand is more elastic. B) if there are fewer firms in the industry. C) if market demand is higher. D) the more output this firm produces.
Assume the market for pork is perfectly competitive. When one pork buyer exits the market,
a. the price of pork increases. b. the price of pork decreases. c. the price of pork does not change. d. there is no longer a market for pork.
Suppose Country A relies on exports of two primary products, sugar cane and rubber.a. According to the predictions of Engel's law, what will happen to the terms of trade of Country A in the long run?b If you are to provide economic policy advice to this nation's government, what advice would you give? In your answer, be sure to explain the reasons behind your advice.
What will be an ideal response?
When a satellite television company gains a subscriber, there is no impact on existing subscribers. That means there is no rivalry in the consumption for their service. This is an example of a
A. purely private good. B. excludable public good. C. purely public good. D. congestible public good.