If median income is unchanged from one year to the next, then per capita income:
A. is decreasing.
B. is increasing.
C. could be increasing, decreasing, or constant.
D. is also constant.
Answer: C
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The introduction of human capital to the Solow neoclassical growth model ________ the predicted rate of return on investment in rich countries relative to poor countries
A) increases B) reduces C) may either increase or reduce D) has no effect on
If a price ceiling were established above the equilibrium price,
A) it would have no effect on the quantity demanded. B) it would create a shortage. C) it would create a surplus. D) none of the above.
For a monopolistic competitive firm, which of the following is TRUE in the long run?
A) ATC is minimized. B) Economic profit is zero. C) P = MC. D) all of the above
Suppose Jack and Kate are at the town fair and are choosing which game to play. The first game has a bag with four marbles in it-1 red marble and 3 blue ones. The player draws one marble from the bag; if it is red, they win $20 and if it is blue, they win $1. The second game has a bag with 10 marbles in it-1 red, 4 blue, and 5 green. The player draws one marble from the bag; if it is red, they win $20; if it is blue, they win $5; and if it is green, they win $1. Both games cost $5 to play. Assume Jack will play the games that have a higher expected payoff than the cost of playing the game. Comparing the expected value of the payoff of each game to the price of $5 to play, we can conclude that Jack should:
A. play the second but not the first. B. play neither. C. play the first but not the second. D. play both.