If the capital stock increases, then the economy can produce ____ output with the ____ amount of labor.
A. same, same
B. less, same
C. more, same
D. less, less
Answer: C
You might also like to view...
During a deflationary period,
A) the price level rises. B) the nominal interest rate does not change. C) the nominal interest rate is less than the real interest rate. D) the real interest rate is less than the nominal interest rate.
Exhibit 30-3 Costs of Eliminating:Firm A Firm B Firm C 1st ton of pollution$ 30 $ 50 $ 600 2nd ton of pollution$ 70 $ 90 $ 700 3rd ton of pollution$125 $150 $ 900 4th ton of pollution$200 $250 $1,300 Refer to Exhibit 30-3. What is the cost to Firm B of eliminating 2 tons of pollution?
A. $350 B. $250 C. $300 D. $140 E. $540
The quantity theory of money assumed
A) that an increase in prices causes a proportionate increases in real GDP. B) a fall in the velocity of money causes a proportionate increase in the money supply. C) a rise in money supply causes a proportionate fall in velocity. D) the fraction of income people desire to hold in the form of money is a constant.
In the simple liquidity preference model, if the money demand curve is elastic, then:
A. small changes to the money supply will cause large changes to the interest rate. B. only large changes to the money supply will cause large changes to the interest rate. C. small changes to the money supply will cause insignificant changes to the interest rate. D. even large changes to the money supply will cause small changes to the interest rate.