The bowed shape of the per-worker production function is caused by
A) wealth effects that reduce labor supply.
B) diminishing marginal productivity of capital.
C) increasing marginal productivity of labor.
D) increasing marginal productivity of capital.
B
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If real GDP was 100 in 2015 and 104.4 in 2016, the growth rate of real GDP between 2015 and 2016 was
A) 2.2 percent. B) 4.4 percent. C) 100 percent. D) 102.2 percent.
In the long run, a monopolistically competitive firm's demand curve becomes more elastic and shifts to the left
a. True b. False Indicate whether the statement is true or false
Suppose the domestic price (without international trade) of wheat is $3.50 per bushel in the United States while the world price is $4.00 per bushel. Assuming the small-country model is applicable and no transportation costs, the United States will
A. have a domestic shortage of wheat. B. neither export nor import wheat. C. export wheat. D. import wheat.
A small country is considering imposing a tariff on imported wine at the rate of $5 per bottle. Economists have estimated the following based on this tariff amount: World price of wine (free trade):$20 per bottleDomestic production (free trade):500,000 bottlesDomestic production (after tariff):600,000 bottlesDomestic consumption (free trade):750,000 bottlesDomestic consumption (after tariff):650,000 bottles Calculate the government revenue from the tariff.
A. $1.25 million B. $3.75 million C. $250,000 D. $125,000