The supply curve of a natural resource like oil has a positive slope because
a. the supply becomes closer to exhaustion as demand rises.
b. it becomes more costly to find and develop supplies as demand rises.
c. rents rise as output increases.
d. indirect taxes rise with output.
b
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Suppose the growth rate of GDP in the United States is 4.2 percent. If 1.1 percent and 1.4 percent of GDP growth are due, respectively, to capital and labor growth, the amount resulting from technological progress is
A) 0.3 percent. B) 1.1 percent. C) 1.4 percent. D) 1.7 percent.
You borrow $10,000 from a bank for one year at a nominal interest rate of 5%. The CPI over that year rises from 180 to 200. What is the real interest rate you are paying?
A) 15% B) 5% C) -1.1% D) -6.1%
If nations trade on the basis of comparative advantage
A. a nation can gain only at the expense of trading partners. B. exporting nations gain and importing nations lose. C. importing nations gain and exporting nations lose. D. all trading partners mutually gain.
The main debate during the 1960s was
A) between Keynesians and classicals. B) between new Keynesians and new classicals. C) between Keynesians and monetarists. D) between new Keynesians and monetarists.