Why might the use of more advanced technology not be a sufficient condition for sustained economic growth?
What will be an ideal response?
It may require an inefficiently high capital labor ratio and complementary factors, especially education, may be lacking. Additional points depend on lecture coverage.
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Environmentalists, politicians, and economists have different perspectives on what constitutes appropriate environmental policy. Which of the following statements was probably made by an economist?
a. "We take the position that there are rights involved here, rights to be protected from threats to your health, regardless of the costs involved." b. "Protecting the environment is so important that standards cannot be too high, and continuing improvements must be made regardless of cost." c. "Pollution is a moral issue that cannot be reduced to dollars and cents." d. "Clean air and water are things we can buy-if the price is right."
Answer the next question based on the following balance sheet for the First National Bank. Assume the reserve ratio is 15 percent.AssetsLiabilities & Net WorthReserves$50,000 Checkable Deposits$120,000Loans75,000 Stock Shares130,000Securities25,000 Property100,000?Refer to the above data. This bank can make new loans of up to:
A. $32,000. B. $41,000. C. $50,000. D. $27,000.
The interest on a business loan is an implicit cost.
Answer the following statement true (T) or false (F)
In Figure 12.6, airline Fly Smart is initially a secure monopoly between two cities X and Y at point M, serving 300 passengers per day at the profit maximizing price of $300 per ticket. Suppose that Fly Smart discovers that a second airline is contemplating entering the market. If the minimum market entry quantity is 130 passengers per day, what price should Smart Fly charge to secure the entry-deterring quantity?
A. $300 B. $220 C. $180 D. $100