Redland produced 10 million tonnes of wheat in a certain year using a given stock of capital and efficiency units of labor
It was able to increase production to 15 million tonnes within two years without any increase in its capital stock or the number of efficiency units of labor. Suppose wheat is the only good produced in Redland. What is likely to be the reason behind the increase in production? Explain with a suitable diagram.
An improvement in technology enables an economy to produce a higher amount of output from the same amount of capital stock and labor. Thus, an improvement in technology is the reason behind Redland's increased output. Such an improvement in technology causes an economy's aggregate production function to shift up as shown in the diagram below:
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How is the impact of contractionary monetary policy different in an open economy than in a closed economy?
What will be an ideal response?
Economic growth can be obtained
A) by government legislation. B) by a change in the level of inputs or an improvement in technology. C) only through a change in the level of inputs, hence the desire for conquest throughout the history of the world. D) only through a change in technology, which explains the explosive growth of the United States.
The managers of Movies Plus, a large movie theater, want to practice third-degree price discrimination. The managers have learned that college students have an own price elasticity of demand of 1.75 for tickets at Movies Plus and adults have an own price elasticity of 1.25. If the managers have correctly determined the third-degree profit-maximizing price for adults is $20, what is the
third-degree profit-maximizing price to charge students? A) $12.50 B) $9.33 C) $15.67 D) $18.25
Policies focused on putting people to work by reducing the costs to their employers would be considered
A. supply-side policies. B. demand-side and supply-side policies. C. demand-side policies. D. monetary policies.