Over the past year, output grew 5%, capital grew 5%, and labor grew 1%. If the elasticities of output with respect to capital and labor are 0.3 and 0.7, respectively, how much did productivity grow?
A. 2.8%
B. 1.0%
C. 2.2%
D. 0.5%
Answer: A
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Gross public debt is
A) the total value of budget deficits plus budget surpluses over the past five years. B) an excess of government spending over government revenues during a given time period. C) a situation in which the government's spending is exactly equal to the total taxes and other revenues it collects during a given time period. D) all federal government debt irrespective of who owns it.
Mercantilism was an economic policy that called for
a. the use of taxes and subsidies to control trade. b. leaving economic decisions to the free market. c. laissez faire. d. the elimination of private property.
Double-entry bookkeeping requires that the debit and credit entries for any transaction must balance
a. True b. False Indicate whether the statement is true or false
It is easier for firms to form and maintain a cartel when:
a. there are cost differences among the industry's firms. b. there are more number of firms in the industry. c. there are greater barriers to entry. d. the goods supplied are varied.