The equilibrium interest rate is determined by the
a. quantity of capital on the market
b. supply and demand for loanable funds
c. marginal revenue product of capital
d. marginal factor cost of capital
e. willingness of suppliers of capital to convert that supply into loanable funds
B
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Table 19-1 ? American Coal British Coal Cost per Ton Cost per Ton $150 £75 Assume that the information in Table 19-1 applies to the cost per ton of coal in 1998. Assume that also over a 10-year period prices rise 100 percent in Great Britain and 200 percent in the United States. According to the purchasing power parity theory, the exchange rate between the dollar and the pound in the year 2008 will be
A. 1 dollar = 2 pounds. B. 1 pound = 2 dollars. C. 1 pound = 3 dollars. D. 1 dollar = 3 pounds.
According to classical growth theory, if labor productivity increases,
A) people save more, which increases the capital per hour even more, and so economic growth continues indefinitely. B) the population grows and eventually real GDP returns to the subsistence level. C) the population grows but more slowly than real GDP so that people's incomes are permanently higher. D) the pursuit of profit causes further increases in capital per hour and technology and economic growth continues indefinitely. E) the growth rate of real GDP per person permanently increases.
Most of the low-income economies have a fertility rate below 2.2 births per woman
Indicate whether the statement is true or false
Which of the following firms is most likely to be a pure monopolist?
A. The most popular hot dog vendor on a city street corner B. The only gas station in a small, isolated town C. A clothing retailer with the best location in a mall D. A grocery store in a large city