Which growth theory models growth as a perpetual motion machine?
A) new growth theory
B) classical growth theory
C) neoclassical growth theory
D) all growth theories model growth as a perpetual motion machine
A
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The country of Bananaland has an abundant supply of banana trees and therefore must be a modern industrial economy
a. True b. False
The marginal product of labor is equal to the
a. incremental cost associated with a one unit increase in labor. b. incremental profit associated with a one unit increase in labor. c. increase in labor necessary to generate a one unit increase in output. d. increase in output obtained from a one unit increase in labor.
When you invest in a mutual fund
(A) Your money is invested in a variety of insurance policies. (B) You are guaranteed a fixed return on your investment. (C) Your money is invested in a variety of stocks and bonds. (D) You have easier access to your money than in a savings account.
Sam Lewis owns a firm in New York City's Garment District. If Sam keeps adding workers to use the same number of sewing machines, eventually the workplace will become so crowded that workers will get in each other's way. At this point
A) the marginal product of labor in Sam's business would be negative and his total output would decrease. B) Sam should encourage his workers to share their sewing machines. C) Sam's business will be in violation of safety rules that have been established by the New York City government. D) Sam should begin using a division of labor in his business.