Total factor productivity growth is that part of economic growth due to
A) capital growth plus labor growth.
B) capital growth less labor growth.
C) capital growth times labor growth.
D) neither capital growth nor labor growth.
D
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If the marginal propensity to save is 0.4 and disposable income increases from $1,000 to $1,500, saving will increase
A) $300. B) $200. C) $100. D) $400.
If a country's real GDP is rising by 3% per year while its population is rising at 5% per year, which of the following is true?
A) Growth in nominal GDP is less than the growth in the population. B) The country's standard of living is falling. C) The country's standard of living is rising. D) Growth in nominal GDP outweighs growth in the population.
Keynes noted that that one solution to a recession was increased government spending, and while it would be nice if the government could spend additional money on housing, roads, and other amenities, he also argued that if the government could not agree on how to spend money in practical ways, then
a. it should not spend the additional money. b. a trade-off would appear. c. the Phillips curve would shift. d. it should spend in impractical ways.
Answer the following questions true (T) or false (F)
1. If a monopolistically competitive firm breaks even, the firm is earning as much in this industry as it could in any other comparable industry. 2. A monopolistically competitive firm that earns economic profits in the short run will be able to expand its market share even if the market size remains constant. 3. A monopolistically competitive firm that earns economic profits in the short run will face a more elastic demand curve in the long run.