In the Solow model production function, Y = F(A, K, eL), K stands for:
A) kurtosis.
B) consumption.
C) capital.
D) Keynes.
Answer: C) capital.
You might also like to view...
All of the following are true about foreign direct investment (FDI) and portfolio investment EXCEPT
A) increases in the flow of portfolio investments increase the likelihood of financial crisis. B) both portfolio investments and FDI are the same in that they both give their holders a claim on the future output of the foreign economy. C) FDI is relatively illiquid compared to portfolio investment. D) portfolio investments have been on the decline in recent years (or decades). E) FDI investors must be willing to go through many ups and downs in order to benefit from their long-term investments.
Minimum wages are:
A. not very controversial. B. always needed to guarantee workers an acceptable standard of living. C. a form of government interference in the free market. D. only enforceable at the federal level.
Lebron James, basketball player with the Cleveland Cavaliers, signed a contract for roughly $100 million. James would be willing to play for only $100,000 . An economist would argue that James is receiving $900,000 in wage-related rent
Indicate whether the statement is true or false
Which of the following is the most likely result of a contractionary gap?
a. Market forces will increase nominal resource costs in the long run b. Short run aggregate supply will shift to the left c. Market forces will lower nominal resource costs d. Wages will increase causing wage push inflation