If productivity is growing at some sustained rate g, then output and capital per worker ________
A) are growing at the same rate g, in a stable steady state
B) are growing faster than g, because improving technology encourages a higher rate of saving and investment
C) are growing slower than g, because some of the new capital is merely replacing obsolete capital
D) are growing faster than g, because productivity does not suffer from diminishing marginal product
D
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Jason needs help getting ready for the next test in his economics course and would like to hire Maria, an economics tutor, to help him
Jason is willing to pay $30 for the first hour of tutoring, $25 for the second, $20 for the third, $15 for the fourth, and $10 for the fifth. The equilibrium price for tutoring is $15 per hour. For how many hours of tutoring will Jason hire Maria? Why this amount of hours? What is Jason's consumer surplus, if any, from the tutoring? What is Maria's consumer surplus from the tutoring?
Rules of thumb that reduce computation costs are known as:
A. judgmental and decision heuristics. B. optimality constraints. C. cost-benefit calculations. D. decision trees.
The demand for hamburger buns is known to be elastic. This means that if the price of the product increases,
A. total revenue will rise. B. total revenue will stay the same. C. the quantity demanded will rise. D. total revenue will fall.
Which of the following institutional structures is most likely to promote growth?
A. A well-enforced system of patents and copyrights. B. A tightly regulated market system. C. A system of tariffs and other trade barriers to protect domestic companies. D. All of these.