Which of the following best describes the relationship between economic growth and literacy?
a. As the economy grows, literacy declines because it becomes less and less useful in a developed economy
b. Increased literacy initially stimulates economic growth by raising labor productivity, but as the economy grows and the opportunity cost of education rises, literacy declines.
c. Increased literacy stimulates economic growth by raising labor productivity, and as the economy grows, people consume more education.
d. There is no correlation between economic growth and literacy.
c
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For a competitive firm, the value of output ___________ and the marginal product of labor ___________ with each additional worker hired.
A. stays constant; decreases B. increases; decreases C. increases; increases D. decreases; stays constant
The largest net international lenders since 1980 have been
A. Russia and Saudi Arabia. B. the United Kingdom and France. C. the United States and china. D. Japan and Germany.
Suppose we know that a monopolist is maximizing its profits. Which of the following is a correct inference? The monopolist has
A. maximized its total revenue. B. maximized the difference between marginal revenue and marginal cost. C. set price equal to its average cost. D. equated marginal revenue and marginal cost.
All else being equal, a permanent decrease in the saving rate in a steady-state economy would cause
A. an increase in the capital-labor ratio and a decrease in consumption per worker. B. an increase in the capital-labor ratio and an increase in consumption per worker. C. a decrease in the capital-labor ratio and a decrease in consumption per worker. D. a decrease in the capital-labor ratio and an increase in consumption per worker.