Refer to Figure 11-2. Assuming no technological change, if the United States increases capital per hour worked by $40,000 every year between 2012 and 2016, we would expect to see
A) the per-worker production function will shift up every year there is increase in capital per hour worked.
B) the per-worker production function will get flatter over time.
C) real GDP per hour worked will increase by the same increment each year between 2012 and 2016.
D) real GDP per hour worked will be lower in 2016 than it was in 2012.
B
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In the above figure, what is the profit-maximizing price and output?
A) $9, 14 B) $13, 14 C) $11, 16 D) $10, 17
Suppose the government eliminates all environmental regulations and, as a result, the production of goods and services increases, but there is considerably more pollution. Based on this scenario, which of the following statements is correct?
a. GDP would definitely increase, despite the fact that GDP includes environmental quality. b. GDP would definitely decrease because GDP includes environmental quality. c. GDP would definitely increase because GDP excludes environmental quality. d. GDP could either increase or decrease because GDP excludes environmental quality.
Efficiency is reached by allocating resources to those who have the greatest willingness to pay for them. This can be achieved in a market where a negative externality is present by:
A. taxing consumers. B. place a quota at the efficient level. C. giving consumers a subsidy. D. All of these will achieve efficiency.
Cyclical unemployment is caused by
A. reducing international trade barriers, which causes some industries to expand employment and others to reduce employment. B. people entering the labor force to search for jobs. C. technological progress, which causes some industries to expand employment and others to reduce employment. D. recessions.