Over the past year, output grew 5%, capital grew 5%, and labor grew 1%. If the elasticities of output with respect to capital and labor are 0.5 and 0.5, respectively, how much did productivity grow?
A. 1.0%
B. 0.5%
C. 1.5%
D. 2.0%
Answer: D
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Use the figure below to answer the following question.
At equilibrium, consumer surplus would be represented by the area
A. a + b + c. B. b. C. a. D. a + b.
Refer to Figure 7.1. Suppose that instead of $350, Angus earns only $250 by playing the bagpipes, but all other earnings remain the same. If there is no ordinance against loud music, property rights belong to
A) Angus. B) Dudley. C) no one. D) both Angus and Dudley.
An income tax increase in the Virgin Islands will cause the Islands'
a. consumption curve to shift downward b. consumption curve to shift upward c. investment curve to shift upward d. investment curve to shift downward e. economy to move to the right along its current investment curve
In general, if a consumer good is produced domestically and consumed domestically, an increase in its price will have which of the following effects?
a. The consumer price index will increase relatively more than will the GDP deflator. b. The consumer price index and the GDP deflator will increase by the same amount. c. The consumer price index will increase relatively less than will the GDP deflator. d. One cannot generalize about the increase in the consumer price index relative to the increase in the GDP deflator.