If an economy is fully utilizing its resources, it can produce more of one product only if it:
A. doubles manufacturing of the product.
B. produces less of another product.
C. adds more people to the labor force.
D. reduces the prices of the most expensive products.
Answer: B
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There are very few gasoline stations in the downtown areas of large cities basically because
A) it would be too dangerous. B) it would be an inefficient use of land for the land's owners. C) most people don't want to buy gasoline while they are downtown. D) zoning laws prohibit it.
The derived demand for borrowed funds has the characteristic negative slope of any demand curve.
Answer the following statement true (T) or false (F)
When investment demand shifts to the left, ________.
A. expansionary monetary policy will shift the aggregate supply to the right by less than before. B. expansionary monetary policy will shift aggregate demand to the right by less than before. C. expansionary monetary policy will shift aggregate demand to the left by less than before. D. expansionary monetary policy will shift the aggregate supply to the left by less than before.
Suppose the production function is Y = AK0.3N0.7. Suppose in 2000, K = 1000, N = 100, and Y = 199.5. In 2010, capital, labor, and output have doubled, so K = 2000, N = 200, and Y = 399. (a)By what percentage did productivity grow from 2000 to 2010? (b)If output had risen to 798 instead of 399, and capital and labor doubled, by what percentage would productivity have grown from 2000 to 2010?
What will be an ideal response?