An increase in the rate of economic growth curve could be caused by all of the following except
A. a national tax that encourages all employers to provide more training and education for employees which leads to an across-the-board upgrade of the skill level of the nation's workforce.
B. a movement along the production possibilities curve so that the society produces more consumer goods and less capital goods.
C. an increase in immigration that increases the country's labor force by 20 percent.
D. an increase in research and development spending for space technology that improves the quality of the nation's capital stock.
B. a movement along the production possibilities curve so that the society produces more consumer goods and less capital goods.
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For a particular product, a demand elasticity is a quantitative measure that shows:
A) the percentage change in quantity demanded relative to the absolute change in any of the other variables included in the demand function for that product. B) the absolute change in quantity demanded relative to the percentage change in any of the other variables included in the demand function for that product. C) the percentage change in quantity demanded relative to the percentage change in any of the other variables included in the demand function for that product. D) the absolute change in quantity demanded relative to the absolute change in any of the other variables included in the demand function for that product.
The most important determinant of price elasticity of supply is
A) the number of close substitutes there are for the good. B) the time period firms have to adjust to the new price. C) the price of the good. D) the importance of the good in the budgets of consumers.
The real balance effect (wealth effect), the interest rate effect, and the net exports effect all help to explain the:
a. decrease in supply in the loanable funds market. b. large federal budget deficit. c. increase in short-run aggregate supply. d. downward-sloping aggregate demand curve.
When the price elasticity of demand is large, then
a. the product is more likely to be a necessity. b. the responsiveness of quantity demanded to a change in price is small. c. the percentage change in price divided by the percentage change in quantity demanded is large. d. the responsiveness of quantity demanded to a change in price is large.