How might a country that is poor in natural resources but rich in labor increase productivity in a way that leads to sustained economic growth?
a. by restricting trade with foreign countries
b. by encouraging citizens to consume most of their incomes
c. by increasing the quantity and quality of its capital
d. by striving to increase the population
c. by increasing the quantity and quality of its capital
You might also like to view...
The greater the curvature of the isoquant:
a. the greater the degree of substitutability between the inputs. b. the lower the possibility of substitution between inputs. c. the higher the impact of a change in relative prices of inputs. d. the lower the prices of inputs.
An increase in the discount rate will lead to a decrease in the money supply
a. True b. False
When net exports are negative,
a. exports are greater than investment b. depreciation is greater than net investment c. imports are greater than investment d. exports are greater than imports e. imports are greater than exports
Suppose that an economy is producing on its production possibilities curve but is not producing quantities of each good where the marginal benefit equals the marginal cost for each good. This economy:
A. should not change its production because it cannot improve its allocation by shifting resources. B. can improve its allocation by lowering the unemployment rate. C. can improve its allocation by producing more of one good and less of the other. D. can improve its allocation by producing more of both goods.