Explain how continuing technical progress may cause the price of scarce, exhaustible resources to fall over time
What will be an ideal response?
Technical progress can lower the extraction cost of exhaustible resources. This decrease in extraction costs can offset the increase in price due to the positive interest rate. This may result in lower resource prices over time.
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Refer to the above table. You have a choice among four alternatives. Choice A lets you invest $250,000 at 4 percent; B lets you invest $125,000 at 6 percent; C lets you invest $62,500 at 8 percent, and D lets you invest $31,250 at 10 percent
Which choice will get you to $1 million faster? A) A B) B C) C D) D
What is Supplemental Security Income?
What will be an ideal response?
In the process described as Schumpeterian economic growth (involving Schumpeter's ideas about growth),
(a) recessions are the object of countercyclical policy designed to minimize the waste of unemployed labor and other resources. (b) expansions are considered wasteful because of the tendency for inflation to be generated near the cyclical peaks. (c) recessions are considered to be useful cleansing devices for abandoning inefficient uses of economic resources. (d) depressions are considered to be necessary to maintain greater equality of wealth and income over time.
The most important among the Federal Reserve district banks in conducting monetary policy is the:
A. Boston bank B. Chicago bank C. New York bank D. San Francisco bank