An increase in the ratio of capital to labor ________ labor productivity.
A. increases
B. will not change
C. has an ambiguous impact on
D. decreases
Answer: A
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To avoid maturity mismatches, most financial intermediaries tend to
A) have assets whose maturities on average exceed the maturities of their liabilities. B) have assets whose maturities on average are less than the maturities of their liabilities. C) have assets whose maturities on average mirror the maturities of their liabilities. D) hold primarily real assets.
According to the convergence hypothesis, as the rate of technological adoption rises in poorer countries,
A. the gap between rich and poor countries increase. B. income inequality rises. C. the flow of net exports can be reduced. D. the gap between wealthy and poor countries close.
Consider the two graphs below. Graph A represents a typical firm in a purely competitive industry. Graph B represents the supply and demand conditions in that industry. The dashed horizontal line represents the current market price for firms and for
the industry. In the long run, what will happen to price, profit, the supply curve, and the number of firms in the industry? What will be an ideal response?
Referring to Table 4.1, Box F should be filled with 
A. $0. B. $100. C. $10. D. $110.