Which of the following ideas apply to the neoclassical growth theory?
I. The rate of technological change influences the rate of economic growth.
II. Technological change promotes saving and investment.
III. Convergence of economic growth rates across countries
A) I only
B) III only
C) I and II
D) I, II and III
D
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Economists assume people's choices
A) are inherently random. B) are the result of greed. C) cannot be predicted. D) conflict with the actions or interests of everyone else. E) create options for other people.
Marginal revenue product measures the:
A. amount by which the extra production of one more worker increases a firm's total revenue. B. decline in product price that a firm must accept to sell the extra output of one more worker. C. increase in total resource cost resulting from the hire of one extra unit of a resource. D. increase in total revenue resulting from the production of one more unit of a product.
Because the behavioral economics approach suggests many alternative behaviors that people might exhibit if they fail to behave as if they are rational, this approach
A. reproduces the same predictions as utility analysis. B. often fails to provide clearly testable behavioral predictions. C. has an over reliance on the rationality assumption. D. ignores the possibility of bounded rationality.
A simultaneous increase in demand and decrease in supply would lead to:
a. An increase in the equilibrium price and a decrease in the quantity sold b. An increase in both the equilibrium price and the quantity sold. c. A decrease in both the equilibrium price and the quantity sold. d. An uncertain effect on the equilibrium quantity but an increase in the equilibrium price.