Increasing returns would be a situation where a firm increases its workforce and other inputs by:
A. 8 percent and its output increases by 5 percent
B. 5 percent and its output increase by 8 percent
C. 8 percent and its output increases by 8 percent
D. 12 percent and its output increases by 10 percent
B. 5 percent and its output increase by 8 percent
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Which expression best represents the break-even level of investment when incorporating labor-augmenting technological change into the Solow growth model?
A) (d + n + g)k B) (d + n)k C) (d + n ) / (k + g) D) (d + n + k) / (gk)
The following is an example of adverse selection
a. A majority of those applying for well paid jobs are well qualified b. More reckless drivers opt for cars with fewer safety devices c. Individuals living in less secure neighborhoods want to buy more insurance d. Individuals with a strong family history of heart diseases opt to buy less insurance
In the classical model there is complete crowding out when government spending increases, but in the short-run macro model there is only partial crowding out
a. True b. False
Suppose in the year 2000 Ken earned $60,000 per year. If the CPI in the year 2000 was 172.2 and in 2015 was 236.7, what is the minimum level of income Ken would have needed to earn in 2015 to have maintained the same standard of living he had in 2000?
a. $80,479 b. $81,237 c. $82,474 d. $83,623