Explain what factors determine how much investment is required to maintain a given level of capital per effective worker
What will be an ideal response?
There are three factors that will affect the amount of required investment: depreciation, population growth, and rate of technological progress.
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The level of real GDP the economy produces at full employment is called
A) sustainable GDP. B) nominal GDP. C) potential GDP. D) maximum GDP. E) Lucas GDP.
Which of the following best illustrates perfect competition?
a. Wheat farming. b. Orange growers setting quotas under the Sunkist cooperative. c. General Motors advertising campaign for its cars. d. All of these.
New oak tables are normal goods. What would happen to the equilibrium price and quantity in the market for oak tables if the price of maple tables rises, the price of oak wood rises, more buyers enter the market for oak tables, and the price of the glue used in the production of the new oak tables increased?
a. Price will fall, and the effect on quantity is ambiguous. b. Price will rise, and the effect on quantity is ambiguous. c. Quantity will fall, and the effect on price is ambiguous. d. Quantity will rise, and the effect on price is ambiguous.
Macroeconomics deals with ________ while microeconomics deals with ________.
A. choices of rich people; choices of poor people B. choices important to people; choices not important to people C. choices that involve money; choices that does not involve money D. economywide choices; choices of individuals