Which of the following must occur to sustain economic growth in the long run?
A) technological progress
B) capital accumulation
C) a higher saving rate
D) all of the above
A
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According to economists, if policymakers are serious about reducing fuel consumption, they need to implement policies that make drivers think carefully about the costs and benefits of every mile driven, and the best way to accomplish this is by
A) increasing the gasoline tax. B) raising mandatory fuel economy standards. C) converting all roads to toll roads. D) limiting the number of miles per year that each driver is allowed to drive.
Which of the following statements is true?
A) Network effects arise because of economies of scale. B) Economies of scale arise because of network effects. C) Economies of scale act as barriers to entry into a market. D) Network effects provide incentives to new sellers to enter the market.
If per capita GDP growth exceeds labor productivity growth, then: a. human capital must be increasing
b. the labor–capital ratio must be decreasing. c. employment must be growing faster than population. d. population must be growing faster than employment. e. physical capital must be increasing.
A local cable company has its rates set at P = $15 by a regulatory commission. Its current output is 10,000 households and its costs are as follows: ATC = $17; AVC = $14; and MC = $15 . From this, we can tell that this is
a. a fair price, and the firm earns a normal profit b. a fair price, and the firm earns an economic loss c. marginal cost pricing, and the firm earns a normal profit d. marginal cost pricing, and the firm earns an economic loss e. the same price that an unregulated monopolist would charge