The idea that saving equals investment in the Solow model means that a steady state can be reached only when
A) s = k.
B) s = n + d.
C) sf(k) = (s + d)k.
D) sf(k) = (n + d)k.
D
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Assume that Virgil purchases a combination of products Y and Z such that, after he is done spending his entire budget, MUy / Py = 25 and MUz / Pz = 25. Based on the equal marginal principle, Virgil
A. should have purchased more Y and more Z. B. should have purchased less Y and more Z. C. is maximizing his total utility. D. should have purchased more Y and less Z.
A graphical analysis of tariffs reveals that
A. they benefit domestic consumers at the expense of domestic producers. B. their revenue gains outweigh the costs to domestic consumers. C. although the benefits are not shared equally, everyone in the domestic economy benefits from tariffs. D. they increase domestic production of the good for which imports face tariffs.
In an efficient market, a scarce good generally has a ____ than a less-scarce good
a. higher price b. higher total utility to consumers c. more even distribution across income classes d. lower price in off-peak periods
Under what conditions is it most likely that a corporation will issue new stock as a form of finance?
a. when the interest rate is rising b. when the interest rate is falling c. when the firm's stock prices is falling d. when bond prices are very high