Compared to high-income countries, low-income countries might have an advantage in achieving higher rates of worker productivity and economic growth in the future. This is because:
a. the economic growth rate begins to diminish as capital deepening increases in high-income countries.
b. the invention of new technology is subject to diminishing marginal returns in high-income countries.
c. the cost of adaption to new technology is lower in low-income countries than in high-income countries.
d. the marginal cost of production decreases more in low-income countries than in high-income countries.
a
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A central theme of the new growth theory is that
A) firms don't really experience profit. B) humans can work harder than previously thought. C) the government is more efficient than private markets. D) the economy doesn't experience diminishing returns. E) firms don't experience diminishing returns.
A free market system tends to
A. produce a fairly equal distribution of income. B. pay people exactly what they are worth. C. produce a relatively unequal distribution of income. D. pay most people more than they are worth, at the expense of reducing firms’ profits.
The addition to the economy's capital stock can be found by
A. Subtracting net income from gross investment. B. Subtracting NDP from GDP. C. Subtracting depreciation from GDP. D. Subtracting depreciation from gross investment.
Refer to the following graph.
With a tariff of $10 a blouse on imported silk blouses from China, the revenue the government would collect from the import of silk blouses from China would be:
A. $20,000. B. $2,800. C. $7,000. D. $0.