Figure 18.3Refer to Figure 18.3. The opportunity cost of producing scooters in Livonia is:
A. 2/3 of a pogo stick.
B. 6/5 of a pogo stick.
C. 1.5 pogo sticks.
D. 1.25 pogo sticks.
Answer: D
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The formula for the multiplier is (1 - MPC)
Indicate whether the statement is true or false
Which of the following is false about potential output?
A. It is the level of output an economy can achieve when labor is employed at its natural level. B. It is the long run output level that guarantees price stability. C. If a country is producing its potential output, then it is producing at a point on its production possibilities frontier. D. It is also called the natural level of real GDP.
Briefly explain the shape of the per-worker production curve in the Solow model. If investment per worker initially exceeds saving per worker, how is the steady-state capital-labor ratio achieved?
What will be an ideal response?
The price of coal fell and the quantity sold also fell. Everything else being equal, it is consistent that
A. the price of oil fell. B. coal miners received large wage increases. C. more efficient mining equipment was installed. D. consumer incomes rose. E. the supply of coal fell.