If a good is capital intensive it means that the good is produced
A) using relatively more capital than goods that are not labor intensive.
B) using capital as the only input.
C) using more capital per unit of output than goods that are not capital intensive.
D) using capital such that the total cost of capital is greater than the total cost of labor.
E) using capital such that the cost of capital is more than 50% of total cost.
A
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A) total real GDP. B) real GDP per capita. C) total nominal GDP. D) nominal GDP per capita.
Today, central banks __________ intervene to influence floating exchange rates
A) never B) seldom C) frequently D) are required
If a purely competitive firm is producing where price exceeds marginal cost, then:
A. the firm will fail to maximize profit, but resources will be efficiently allocated. B. the firm will fail to maximize profit and resources will be overallocated to the product. C. the firm will fail to maximize profit and resources will be underallocated to the product. D. resources will be underallocated to the product, but the firm will maximize profit.
An increase in money supply causes the real interest rate to ________ and output to ________ in the short run, before prices adjust to restore equilibrium.
A. rise; rise B. rise; fall C. fall; rise D. fall; fall