In the Romer model. as more labor is devoted to research and development ________
A) there is an immediate decrease in output per capita
B) there is an immediate increase in output per capita
C) output per capita is unaffected, but the savings rate begins to rise
D) output per capita is unaffected, but the savings rate begins to fall
A
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Suppose that the capital stock initially is 1000, the depreciation rate is 0.08, and investment is 220. This makes the net growth of the capital stock
A) 300. B) 237.6. C) 202.4. D) 140.
In a forward contract
A) the spot price is held constant. B) you can lock in today's price for the future. C) you can lock in a future price today. D) you can lock in a future quantity today.
A budget surplus exists when
a. Tax receipts < government expenditures + transfers. b. Tax receipts > government expenditures + transfers. c. Government expenditures ? transfers > tax receipts. d. Government expenditures > transfers + tax receipts.
When a firm produces a product that creates external costs
A. the firm produces a level of output smaller than would be produced without the external cost. B. the firm produces a level of output larger than would be produced without the external cost. C. the firm produces a level of output which would be the same as it would produce without the external cost. D. the market provides the efficient level of output even with the existence of the external cost.