If a country's human capital improves, ________
A) the country will have more inequality for a given level of capital stock
B) the country will have a lower GDP for a given level of capital stock
C) the country will have more poverty for a given level of capital stock
D) the country will have a greater GDP for a given level of capital stock
Consider two economies: A and B. Both the countries have access to the same aggregate production function and have the same population and same efficiency units of labor, but have different technologies. Technology in economy B is more advanced than the technology in economy A.
D
You might also like to view...
The reason that the prisoner's dilemma presents a dilemma is that:
A. each player has an incentive to play his or her dominated strategy, but when both choose the dominated strategy each player has a lower payoff than if they both had chosen the dominant strategy. B. the market cannot be in equilibrium because the players do not have dominant strategies. C. neither player has a comparative advantage, so neither can infer what the other player will choose. D. each player has an incentive to play his or her dominant strategy, but when both choose the dominant strategy each player has a lower payoff than if they both had chosen the dominated strategy.
If velocity is constant and equal to 5, a $20 billion shift of the LM curve to the right will be produced by a __________ in the money supply
A) $100 billion increase B) $100 billion decrease C) $4 billion increase D) $4 billion decrease
An increase in foreign investment in Brazil's mining industry will increase the capital stock in Brazil. Holding labor and total factor productivity constant, continued increases in the capital stock will lead to
A) larger and larger increases in real GDP. B) smaller and smaller increases in real GDP. C) larger and larger decreases in real GDP. D) small increases, followed by small decreases, in real GDP.
If a firm is operating at an output level where losses are minimized the firm
A) has no incentive to stay in the industry. B) is better of exiting the industry. C) is maximizing profits. D) will shut down