Initially, the economy is at point B in Figure 10-3 above. We may conclude that over time,
A) per person saving and steady state investment will remain stable at points C and D respectively.
B) per person capital will grow, point D to E since per capita savings exceed steady state investment, point C is greater than point D.
C) per person capital will grow, point D to E since per capita savings is less than steady state investment, point C is greater than point D.
D) per person saving and steady state investment will remain stable at points D and C respectively.
B
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If competing price searchers adjust their own prices on the basis of a close monitoring of their rival's prices,
A) all prices will tend to be the same, which proves prices are not competitive. B) all prices will tend to be the same, which proves sellers are not competing on price. C) each price searcher's demand curve will be indeterminate. D) prices will fluctuate regularly. E) prices will rise when costs increase but will not fall when costs decrease.
Capital goods are
A) a type of intermediate good. B) final goods, because they are not used up during a given year. C) produced in the same year as the related final good, whereas intermediate goods are produced in different years. D) produced in one year, whereas final goods are produced over a period of more than one year.
The U.S. income tax is a:
A. proportional tax. B. progressive tax. C. singular tax. D. regressive tax.
Sulfur Dioxide Discharged (Tons)Firm AFirm B10$8,000$9,000910,00012,000815,00018,000720,00027,000628,00037,000Table 16.3Table 16.3 shows the production cost for two utilities at different levels of sulfur dioxide emissions. Assume that the government issued 8 marketable pollution permits to each firm. If Firm B would like to purchase one permit to be able to discharge nine tons of sulfur dioxide, what is Firm B's willingness to pay?
A. $2,000 B. $5,000 C. $6,000 D. $9,000