Suppose that we interpret N as the "effective" labor supply. A "labor-augmenting" technological improvement, when graphed in the Solow growth model, causes (Y/N) to ________ and real GDP per person to ________
A) rise, rise
B) rise, fall
C) fall, rise
D) fall, fall
E) fall, remain unchanged
C
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Winnie's Car Wash is a perfectly competitive firm. The table above shows Winnie's total product schedule. If the price of a car wash is $5, what is the value of marginal product of the second worker?
A) $100 B) $20 C) $30 D) $125
Suppose Congress increased spending by $100 billion and raised taxes by $100 billion to keep the budget balanced. What will happen to real equilibrium GDP?
A) There will be no change in real equilibrium GDP. B) Real equilibrium GDP will fall. C) Real equilibrium GDP will rise. D) Real equilibrium GDP will initially rise, but then fall below its previous equilibrium value.
The trade-off between risk and expected value is exactly the kind of choice you have to make whenever you think about investing money in:
A. stocks. B. retirement funds. C. bonds. D. One needs to think about the trade-off to invest in all these things.
Cooperation:
A. is a mixed strategy. B. fails when the temptation to cheat is sufficiently strong. C. eliminates the temptation to cheat. D. is always a Nash equilibrium.