Refer to Figure 6.1. Suppose the economy is originally in steady state at k*1. If the saving rate increases from s1 to s2, the capital-labor ratio will begin to ________, and real GDP per worker will ________
A) rise; rise
B) rise, fall
C) fall, fall
D) fall; rise
A
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As a result of financial deregulation
A) the IS curve became flatter and the LM curve became steeper, with the result that the interest rate became more volatile. B) the IS curve became steeper and the LM curve became flatter, with the result that the interest rate became more volatile. C) both the IS curve and the LM curve became steeper, with the result that the interest rate became more volatile. D) both the IS curve and the LM curve became flatter, with the result that the interest rate became more volatile.
The difficulty in analyzing oligopolistic behavior arises from the
a. degree of government regulation of the market structure. b. interdependent nature of oligopolistic decisions. c. large number of firms in the industry. d. market power of consumers.
A good is excludable if
a. one person's use of the good diminishes another person's enjoyment of it. b. the government can regulate its availability. c. it is not a normal good. d. people can be prevented from using it.
Exhibit 10-11 Labor wage and cost data Labor Wage TWC MFC10 $ $ 50.00 $ 11 5.80 12 17.80 13 102.70 14 126.00 15 46.50 ? In Exhibit 10-11, the total wage cost of hiring 12 employees is equal to:
A. $17.80. B. $63.80. C. $102.70. D. $81.60.