An increase in the capital stock would be expected to
A. decrease the labor force.
B. increase the level of output.
C. decrease real GDP per capita.
D. increase real GDP per capita.
Answer: D
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Which of the following statements is true of growth in the U.S. economy from 1950 to 2007?
A) Growth resulting from physical capital > growth resulting from technology > growth resulting from human capital B) Growth resulting from technology > growth resulting from physical capital > growth resulting from human capital C) Growth resulting from human capital > growth resulting from technology > growth resulting from physical capital D) Growth resulting from technology > growth resulting from human capital > growth resulting from physical capital
Which of the following is true about the relationships among various cost curves?
a. When MC exceeds ATC, ATC must be rising. b. When MC exceeds ATC, ATC could be rising or falling. c. When ATC is falling, MC must exceed ATC. d. When TC is rising, MC must exceed TC. e. TC falls when AFC falls.
"A good business decision maker will never sell a product for less than it costs to produce." This statement is
a. true because diminishing returns always cause marginal costs to rise in the short run. b. false because diminishing returns always cause fixed costs to rise in the short run. c. true because it clearly differentiates between accounting profit and economic profit. d. false because a business decision maker may be covering his current variable costs even though he has failed to cover all previous production costs.
Reserve demand becomes horizontal at the IOER rate because:
A. the reserve supply is always set by the Fed so that the federal funds rate is greater than the IOER rate. B. banks will not make loans at less than the IOER rate. C. banks must earn more than the IOER rate to lend. D. the IOER rate is the upper bound of the target federal funds rate