Assume the capital-labor ratio remains constant. If investment increases at a constant rate, real GDP per worker will increase ________, and if total factor productivity increases at a constant rate, real GDP per worker will increase ________
A) at an increasing rate; at an increasing rate
B) at a constant rate; at an increasing rate
C) at a constant rate; at a decreasing rate
D) at a decreasing rate; at a constant rate
D
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In addition to prediction, one purpose of regression analysis is:
a. to measure the overall "fit" of the model to the sample observations b. to test whether the slope parameter ? is equal to some particular value c. to test whether the slope parameter ? is equal to zero d. b and c e. none of the above
According to the Rule of 70, it takes 70 years for a sum of money to double in value when the interest rate is 5 percent
a. True b. False Indicate whether the statement is true or false
To estimate the value of a statistical life, economists sometimes look at the decisions that people make that will change their risk of death. For example, people may accept a more dangerous job in exchange for higher pay. This method of determining the value of a statistical life is known as
A. the trade-off method. B. the actuarial method. C. revealed preference. D. stated preference.
If banks engage in fractional reserve banking, it means that
A. they hold less than 100 percent of their deposits as reserves. B. they never run short of currency. C. a fraction of their legal reserves are held as top-grade government securities. D. they do not hold any excess reserves.