Convergence refers to what phenomenon regarding growth theory?
What will be an ideal response?
Convergence refers to the phenomenon where the levels of output per capita for countries tend to move closer to one another over time. This implies that countries that start with relatively lower levels of output per worker catch up to other countries and, in some cases, actually pass other countries.
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If a firm hires one worker and eliminates four units of capital, and hires one more worker and replaces three more units of capital, keeping output constant, then
A) workers and capital are perfect substitutes. B) the firm is operating inefficiently because capital is more efficient than workers. C) the firm is experiencing a diminishing marginal rate of technical substitution. D) there are decreasing returns to scale.
Because of the automatic stabilizers, a decline in the level of economic activity will cause:
a. a reduction in tax revenues collected. b. an increase in government expenditures. c. a greater budget deficit. d. all of these.
A bank's assets and liabilities are listed on a _____
a. balance sheet b. loan application c. deposit slip d. return statement
Along an indifference curve,
A. the marginal utility of all items is equal. B. the prices of all goods are equal. C. the total satisfaction is the same. D. the marginal utility/price ratios of all items are equal.