In Solow's exogenous growth model, the principal obstacle to continuous growth in output per capita is due to
A) the declining marginal product of labor.
B) the declining marginal product of capital.
C) limits in the ability of government policymakers.
D) too little savings.
B
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Kevin is re-finishing an antique grandfather clock that he purchased at a flea market for $300. He expects to be able to sell the clock for $450
At the last minute, Kevin discovers that he needs to repair the gears at a cost of $175 to make the clock worth $450 to potential buyers. It turns out that he could also sell the clock now, without completing the additional repairs, for $250. What should Kevin do? A) He should sell the clock now for $250. B) He should keep the clock but not make the repairs since the original $300 is a sunk cost. C) He should complete the additional repairs and sell the clock for $450. D) He should keep the clock after making the repairs since it is not rational to spend a total of $475 on an item that can only be sold for $450. E) Kevin is indifferent between selling the clock as is or selling it after completing the repairs.
A price taking firm is able to sell its product just slightly above the current market price.
Answer the following statement true (T) or false (F)
Medicare is a health care program
a. for poor and low income people b. administered through Social Security for retired workers starting at age 55 c. administered through Social Security for everyone over 65 years d. administered by state governments for people who are not covered by private health insurance e. administered by the federal government for people who are not covered by private insurance
Points on the production possibilities frontier represent efficient levels of production
a. True b. False Indicate whether the statement is true or false