In constructing a production possibilities curve, all of the following are assumed EXCEPT
A. the time period involved is fixed.
B. resources are fully employed.
C. the quantity and quality of resources being used is fixed.
D. the state of technology is improving.
Answer: D
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From one year to the next, a country's output rose from 4000 to 4500, its capital stock rose from 10,000 to 12,000, and its labor force declined from 2000 to 1750. Suppose aK = 0.3 and aN= 0.7
(a) How much did capital contribute to economic growth over the year? (b) How much did labor contribute to economic growth over the year? (c) How much did productivity contribute to economic growth over the year?
Credit risk is the risk that
A) an insufficient number of borrowers will apply for loans or credit. B) interest rates will rise after a loan has been granted. C) interest rates will fall after a loan has been granted. D) borrowers might default on their loans.
A Gini coefficient of 0 represents perfect equality in the distribution of income
Indicate whether the statement is true or false
Say the bus authority in your city increased the typical bus fare from $1.00 to $1.50 and that due to this increase total revenue increased by 20%. Based on this we know that the price elasticity of bus rides in your neighborhood is (assume demand curve is linear):
A. 0.4. B. 0.8. C. 1.5. D. 1.