According to the Solow model, technological progress will cause output to increase for two reasons. What are these two reasons?
What will be an ideal response?
The increased efficiency which comes with technological progress will directly raise per capita output, and technological progress leads to additional capital deepening.
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The present value of $50 to be received next year is $40. The interest rate is
A) 10 percent. B) 20 percent. C) 25 percent. D) 50 percent.
Refer to Scenario 15.3. $X would be higher if
A) her income were higher and she were younger. B) her income were higher and she were older. C) her income and the mortality rates for someone of Ms. Qwerty's statistical profile were both lower. D) her income and the mortality rates for someone of Ms. Qwerty's statistical profile were both higher. E) she were older and the relevant mortality rate were lower.
If the market price falls below the bottom of the firm's ATC curve:
A. there is no level of output at which the firm can make a profit. B. the firm is earning profits. C. the market price must be lower than the firm's AVC. D. Total revenue must be higher than total cost.
The demand curve facing a monopolist is
A. perfectly elastic. B. identical the demand curve for a perfectly competitive firm. C. perfectly inelastic. D. downward sloping.