What best explains why real GDP per person is always driven to the subsistence level in the classical model?
A) Population growth occurs, increasing the supply of labor.
B) Population growth occurs, shifting the labor supply curve leftward.
C) Growth is not possible so the demand for labor never changes.
D) Investment in capital decreases labor demand, decreasing the demand for labor.
A
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The federal budget deficit can be reduced by
A) raising government spending. B) raising transfer payments. C) higher interest rates. D) raising taxes.
The U.S. Justice Department, on the basis of the Herfindahl index, classifies the industries with the value:
a. below 500 as highly competitive; 500-1000 as moderately competitive; and above 1000 as highly concentrated. b. below 1000 as highly competitive; 1000-1500 as moderately competitive; and above 1500 as highly concentrated. c. below 500 as highly competitive; 500-1500 as moderately competitive; and above 1500 as highly concentrated. d. below 1000 as highly competitive; 1000-1800 as moderately competitive; and above 1800 as highly concentrated. e. below 1500 as highly competitive; 1500-2000 as moderately competitive; and above 2000 as highly concentrated.
Assume the demand schedule for cookies is downward sloping. If the price of cookies falls from $1.50 to $1.25 per dozen,
a. the demand for cookies will fall. b. the demand for cookies will rise. c. a larger quantity of cookies will be demanded. d. a smaller quantity of cookies will be demanded.
Cooperation in prisoner's dilemma-type games:
A. always benefits the players and the public. B. doesn't always benefit the players, but always benefits the public. C. doesn't always benefit the players or the public. D. always benefits the players, but does not always benefit the public.