Which of the following is NOT a reason for differences in per capita income in neoclassical growth theory?
A) All countries have the same production function.
B) Countries have different savings rates.
C) The slope of the steady-state investment line is different for different countries.
D) All of the above.
A
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High rates of saving today contribute to ________ in the future.
A. more capital gains B. a higher standard of living C. more unemployment D. higher tax rates
Refer to Table 4-4. Suppose that the quantity of labor supplied increases by 40,000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?
A) W = $9.50; Q = 420,000 B) W = $9.00; Q = 410,000 C) W = $8.50; Q = 400,000 D) W = $8.00; Q = 390,000
Ceteris paribus, which of the following will cause the supply of paper to decrease?
A.) The price of lumber, an ingredient in paper production, increases. B.) The federal government decides to subsidize the production of paper. C.) People rely more on electronic books and less on printed materials. D.) The technology used to produce paper improves.
Assume that the graph below describes the current labor market for nurses in a mid-sized city and that the labor market is perfectly competitive.
If supply shifts from S0 to S1 and demand shifts from D0 to D1, then the equilibrium wage will ________, and the equilibrium number of nurses will ________.
A. increase; increase B. stay the same; increase C. increase; stay the same D. stay the same; stay the same