A decrease in population growth will lead to a ________ in the steady-state capital—labor ratio and a ________ in output per worker
A) fall; fall
B) fall; rise
C) rise; rise
D) rise; fall
C
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The natural unemployment rate is
A) equal to 0 percent. B) the rate at which cyclical unemployment is equal to 0 percent. C) the same as the cyclical unemployment rate. D) the rate at which cyclical unemployment is equal to 6 percent. E) none of the above.
What are the characteristics of the perfectly competitive market?
What will be an ideal response?
Many developing countries face a balance of payments constraint because:
A. they fail to implement exchange rate policy correctly. B. they hold too few international reserves. C. they hold too many international reserves. D. the IMF forces them to adopt policies that are counterproductive.
If a new entrant (or an established firm) wants to leave a contestable market,
a. all, or nearly all of, the invested capital values can be recovered. b. another firm will always enter to take its place. c. it must accept large losses in its capital investment, so it is unlikely to exit. d. its leaving will be contested by regulators in the market who seek to prevent exit.