According to the Solow model, output is a function of the quantity of:
A. ideas.
B. labor, capital, and ideas.
C. capital.
D. labor.
Answer: B. labor, capital, and ideas.
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From an economic perspective, when consumers leave a fast-food restaurant because the lines to be served are too long, they have concluded that the
A. marginal cost of waiting is less than the marginal benefit of being served. B. management is making an assumption that other things are equal. C. marginal cost of waiting is greater than the marginal benefit of being served. D. management is exhibiting irrational behavior by not maximizing profits.
Labor unions are restrained in their wage demands because
A. most unions deal with employers who have superior bargaining power. B. marginal wage cost curves lie above labor supply curves in most labor markets. C. legislation limits annual increases in nominal wages to 6%. D. the labor demand curve is downward-sloping.
A current account surplus can occur if ________, all other variables remaining unchanged
A) net exports is negative B) net transfer payments from abroad is positive C) net national savings equals zero D) net factor income from abroad equals zero
Using AK growth models and assuming that the labor force is fixed at the value of 1,
A) real GDP per worker is greater than real GDP per capita. B) real GDP per capita is less than real GDP. C) real GDP is greater than real GDP per worker and real GDP per capita. D) there is essentially no difference in real GDP, real GDP per worker, and real GDP per capita.