An increase in the capital-labor ratio is associated with
a. innovations
b. a decrease in the capital-output ratio
c. an increase in the capital-output ratio
d. capital deepening
e. technological improvement
D
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Joe and Rita each have some milk and cookies (Milk on the horizontal axis). Joe's MRS of cookies for milk is two. Rita's MRS of cookies for milk is four. Which of the following statements is TRUE?
A) No gains from trade are possible. B) Both Rita and Joe can be made better off if Rita gives Joe some cookies in exchange for milk. C) Rita and Joe are on the contract curve. D) Both Rita and Joe can be made better off if Joe gives Rita some cookies in exchange for milk.
Although it is possible to determine the present value of a payment to be received in one year, it is not possible to determine the present value of a stream of payments over several years
a. True b. False Indicate whether the statement is true or false
The substitution effect refers to a change in the actual income of a potential consumer
a. True b. False Indicate whether the statement is true or false
Which of the following best describes how an increase in the money supply shifts aggregate demand?
A. The money supply shifts right, prices fall, spending increases, and aggregate demand shifts right. B. The money supply shifts right, the interest rate falls, investment increases, and aggregate demand shifts right. C. The money supply shifts right, prices rise, spending falls, and aggregate demand shifts left. D. The money supply shifts right, the interest rate rises, investment decreases, and aggregate demand shifts left.