A key feature of the new growth theory is the assumption of
A) diminishing returns to labor.
B) diminishing returns to knowledge.
C) no diminishing returns to knowledge.
D) no diminishing returns to labor.
C
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Which of the following is an alternative measure of exchange rate proposed by The Economist magazine?
A) The midcap index B) The Consumer Price Index C) The Big Mac Index D) The GDP deflator
________ is the change in market value of capital over a given period
A) Accounting depreciation B) Implicit rental rate C) Economic depreciation D) Accounting implicit rental cost
Marginal profit is positive at all positive output levels.
Answer the following statement true (T) or false (F)
If the current allocation of resources in the market for wallpaper is efficient, then it must be the case that
a. producer surplus equals consumer surplus in the market for wallpaper. b. the market for wallpaper is in equilibrium. c. on the last unit of wallpaper that was produced and sold, the value to buyers exceeded the cost to sellers. d. All of the above are correct.