An action at which it is possible to change the activity level in only one direction is called:
A. an interior action.
B. a boundary action.
C. a limited action.
D. a marginal action.
B. a boundary action.
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Over the past year, productivity grew 1%, capital grew 0%, and labor grew 5%. If the elasticities of output with respect to capital and labor are 0.4 and 0.6, respectively, how much did output grow?
A) 1% B) 2% C) 3% D) 4%
How do the hierarchical and dual mandates differ in terms of macroeconomic consequences?
What will be an ideal response?
Based on your understanding of your roommate's preferences, you predict that he will select the spaghetti for his lunch at the cafeteria, but instead he chooses the gyros. How do you describe this event in terms of economic theory?
A) Your roommate is irrational. B) Your roommate does not know what is in his own best interests. C) You roommate does not know his own preferences as well as you do. D) You constructed a model that made a prediction, and the prediction was refuted.
Between 1999 and 2015, globally the number of children who were not attending school:
A. dropped to less than 16 percent. B. reduced by half. C. doubled. D. dropped to less than 6 percent.