Refer to Table 11-7. Consider the statistics in the table above in describing the following industrialized and developing countries. Are these consistent with the economic growth model? Briefly explain
What will be an ideal response?
These statistics combine industrialized countries with developing countries. The statistics in this table are not consistent with the predictions of the economic growth model. For example, Belgium, France, Canada and Denmark had much higher levels of real GDP per capita in 1960 than did Bangladesh, Honduras, and Bolivia. The economic growth model predicts that Belgium, France, Canada, and Denmark should have grown more slowly than Bangladesh, Honduras, and Bolivia. But the table shows that they grew much faster.
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At a level of real disposable income of $1,000, suppose consumption is $2,000. Given this information, we know with certainty that saving equals
A) $2,000. B) $0. C) -$1,000. D) -$2,000.
In the research that used the audit method to send 38 people to purchase new cars from car dealers in Chicago, the highest prices were quoted to
A) black women. B) white women. C) black men. D) white men.
The figure above shows a local lawn cutting service's demand for labor curve when the price of cutting an acre of lawn is $50 per acre. If the price of lawn cutting rises to $60 per acre of lawn cut, the firm's demand for labor curve
A) shifts rightward. B) shifts leftward. C) does not shift at all, but the firm moves upward along the curve. D) None of the above because this change shifts the supply of labor curve.
Real business cycle theory emphasizes that shocks to technology can play a big part in causing economic fluctuations
Indicate whether the statement is true or false