The neoclassical growth theory is based on a subsistence real wage rate
Indicate whether the statement is true or false
FALSE
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When the foreign exchange value of the Mexican peso is above its equilibrium rate, the peso will:
a. tend to be revalued. b. tend to increase in value over other currencies. c. be high demand in the foreign exchange market. d. tend to depreciate. e. tend to appreciate.
If the economy were producing at point E and moved to point D,
A. the unemployment rate would increase.
B. the unemployment rate would decrease.
C. the production possibilities would shift outward.
D. the economy would shift resources from producing butter to increasing the production of guns.
Refer to the graph shown. Without government intervention, market forces would result in:
A. 500 labor hours demanded, 900 labor hours supplied, and a wage rate of $7.25 per hour. B. 500 labor hours demanded, 500 labor hours supplied, and a wage rate of $7.25 per hour. C. 800 labor hours demanded, 800 labor hours supplied, and a wage rate of $6.50 per hour. D. 1,200 labor hours demanded, 500 labor hours supplied, and a wage rate of $4.50 per hour.
Which of the following statements is true about health care costs in the United States?
A. Costs have risen because increases in the price of health care have more than offset reductions in the quantity of health care provided. B. Costs have risen because increases in the quantity of care provided have more than offset price reductions realized through economies of scale. C. Costs have risen because both the price of health care and the quantity provided have risen. D. Costs have remained relatively stable as price increases have been largely offset by reductions in the quantity provided.