The Golden Rule capital—labor ratio is the level of the capital—labor ratio that, in the steady state,
A) maximizes output per worker.
B) maximizes investment per worker.
C) maximizes consumption per worker.
D) maximizes capital per worker.
C
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Which of the following statements best describes excess demand, or shortage?
a. The area between the supply and demand curves above the equilibrium point is called excess supply, or surplus. b. The area between the supply and demand curves below the equilibrium point is called excess supply, or surplus. c. The area between the supply and demand curves to the right of the equilibrium point is called excess supply, or surplus. d. The area between the supply and demand curves to the left of the equilibrium point is called excess supply, or surplus.
Refer to Figure 6.4. What area represents the decrease in consumer surplus when the price of computers increases from $1,000 to $1,500?
A. b
B. b + e
C. b + c
D. a + b
A sterilized foreign exchange intervention would:
A. leave the central bank's balance sheet unchanged. B. alter the liability side of the central bank's balance sheet but leave the asset side unchanged. C. alter the asset side of a central bank's balance sheet but leave the domestic monetary base unchanged. D. not alter the central bank's holdings of international reserves.
The _____________________ is the effect of a change in the price of an input on the firm's relative use of the input to produce a given level of output
Fill in the blank(s) with the appropriate word(s).