The general schooling model predicts that schooling increases
A. as both ability and the discount rates increase.
B. as both ability and the discount rate decrease.
C. as ability increase but as the discount rate decreases.
D. as ability decreases but as the discount rate increases.
E. when ability is held constant and the discount rate increases.
Answer: E
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The new growth theory attempts to explain
a. the rate of population growth within a country. b. the rate of capital accumulation within a country. c. the factors that determine the size of the Solow residual. d. why there are diminishing returns to capital.
The elite theory of government maintains that
A. Politicians who have held office for a long time are favored by the voters B. Wealthy, politically powerful people control government, and government has no interest in meeting the needs of ordinary people C. Special interest groups make government policy D. None of the above E. Poor people and people of color should not be allowed to vote
Suppose that the price of chicken rises sharply compared to the price of turkey. In response, consumers buy more turkey and less chicken than they did in the CPI base year. In this situation the CPI will tend to ________ inflation as a result of ________ bias.
A. overstate; quality adjustment B. accurately measure; substitution C. overstate; substitution D. understate; substitution
In the above figure, the second ton of wheat would be produced even though the producer surplus on it is zero if the price per ton of wheat was
A) $25. B) $50. C) $75. D) $100.