In the endogenous growth model, an increase in a worker's level of human capital
A) increases the amount of additional human capital she can produce, but does not increase the amount of output she can produce.
B) increases the amount of additional output she can produce, but does not increase the amount of human capital she can produce.
C) increases both the amount of additional human capital she can produce and the amount of output she can produce.
D) increases neither the amount of additional human capital she can produce nor the amount of output she can produce.
C
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In the 1970s, the main economic problem was
A. stagflation. B. huge budget surpluses. C. a slow growing money supply. D. an economy that was expanding too rapidly.
La Dila and Swiss Pro are the only two firms in an industry. The firms charge equal prices for their products, which are perfect substitutes. La Dila decides to lower its price slightly. Swiss Pro responds by cutting its price further
This price cutting will continue as long as each firm's ________. A) price is lower than marginal cost B) price is higher than marginal cost C) price is higher than zero D) price is higher than the average fixed cost
Refer to Figure 2-5. If the economy is currently producing at point Y, what is the opportunity cost of moving to point W?
A) 2 million tons of steel B) 16 million tons of paper C) zero D) 9 million tons of paper
The supply of loanable funds curve
a. is upward sloping b. is downward sloping c. is horizontal d. begins sloping upward, then levels off e. may slope either upward or downward, depending upon the interest rate