Suppose an economy experiences a 5% increase in human capital. We know that this will cause
A) Y/N to increase by more than 5%.
B) Y/N to increase by exactly 5%.
C) Y/N to increase by less than 5%.
D) no change in Y/N.
E) a reduction in output per worker.
C
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Suppose you are offered a gamble in which you win $1,000 half the time but lose $1,000 half the time. If you are risk averter will you take the gamble?
What will be an ideal response?
Discuss the consensus on the adjustment process after the crisis
What will be an ideal response?
Suppose there are two identical factories on a river. Both require clean water for their production processes. The upstream firm gets clean water from the river and dumps dirty water into the river. The downstream firm must clean the water it gets from
the river before it can use the water and later it dumps dirty water into the river. In this situation A) the private costs of the two firms are the same since both dump dirty water into the river. B) the upstream factory's private costs are lower than its social costs since it passes the costs of the dirty water on to the downstream firm. For the downstream firms, private costs equal social costs. C) the private costs of the downstream firm are greater than the private costs of the upstream firm and the social costs are less than the private costs for both firms. D) the private costs of the upstream firm are less than its social costs while the social costs of the downstream firm are less than its private costs.
An example of Friedman's k-percent rule is
A) "do not change the growth rate of the quantity of money." B) "every time GDP decreases, decrease the growth rate of the quantity of money." C) "set the growth rate of the quantity money equal to the unemployment rate." D) "every time GDP decreases, increase the growth rate of the quantity of money." E) "use all information available to determine the growth rate of the quantity of money each time GDP changes."