Initially, the economy is at point B on Figure 10-1 above. According to the Solow model of growth, in the short run, the discovery of a cold fusion process which reduces the cost of energy by 50%, ceteris paribus, will shift the economy from ________
. A) B to H, increasing per capita output without increasing capital per capita
B) B to C, increasing per capita output with increasing capital per capita
C) B to C, increasing per capita output without increasing savings
D) B to I, increasing output, saving and capital per capita
A
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Refer to Figure 4.1. Suppose Alvin chooses Top, while Simon chooses Down, and Theodore chooses Right. Simon's payoff will be
A) 2. B) 8. C) 10. D) 18.
Which of the following is not a characteristic of an oligopolistic industry?
A) Substantial barriers to entry. B) The output produced by the firms in the industry may be homogeneous or differentiated. C) A small number of large firms. D) One dominant firm and low entry barriers.
A likely explanation for the 2008-2009 recession is
A) an increase in energy prices. B) financial market problems. C) a drastic reduction in government expenses. D) an increase in taxes.
The change in the contribution of capital formation was the chief cause of the productivity slowdown in 1973-1995
a. True b. False Indicate whether the statement is true or false