An increase in the capital stock causes labor productivity to
a. decrease and the standard of living to increase
b. increase and the standard of living to decrease
c. decrease and the standard of living to decrease
d. increase while the standard of living remains constant
e. increase and the standard of living to increase
E
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The income approach measures GDP by adding together compensation of employees, proprietors' income, ________
A) net investment, saving, and farmers' income B) net interest, rental income, and corporate profits C) net investment, rental income, and corporate profits D) net saving, investment income, and profits
If our economy is growing at a constant rate of 5 percent per year, then over a period of 10 years we would expect to see which of the following?
A) nice, steady flat-line growth B) an upward sloping growth path C) a downward sloping growth path D) It is impossible to say what kind of growth path we would see.
Say's Law
a. cannot be satisfied if there is excess supply or demand in individual markets in the long run b. ensures that every firm will sell all of its output c. can be satisfied even if there is a general overproduction or underproduction of goods in the economy d. is satisfied only if every market clears in the short run e. shows that the total value of spending in the economy will equal the total value of the output produced
The substantial increase in clear property rights has severely impeded growth in many developing countries.
Answer the following statement true (T) or false (F)