Industria and Agraria are two neighboring countries. Suppose Good X is the only good produced in both the countries and is a function of physical capital and efficiency units of labor
It is found that a one unit increase in capital leads to a higher increase in the production of Good X in Agraria than in Industria. What is the reason behind this if the number of efficiency units of labor in both the countries are equal?
If the number of efficiency units of labor is constant, an increase in capital stock leads to an increase in output. However, the increase in output is higher if less capital is used in production. Thus, a one unit increase in capital causes a higher increase in output if the capital stock is lower. This implies that the capital stock in Agraria is lower than the capital stock in Industria.
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A) impact on the availability of a resource needed to produce a good or service. B) the unintended consequences of a change that are not immediately identifiable but are felt over time. C) best alternative that must be forgone as the result of a choice. D) immediate and visible intended consequences of a change.
In 1937-1938, the number of unemployed
A. fell dramatically by about 5 million. B. fell slightly by about 1 million. C. rose slightly by about 1 million. D. rose dramatically by about 5 million.
To close a recessionary gap using fiscal policy, the government can _____
Fill in the blank(s) with the appropriate word(s).
Which statement is true?
A. The APC plus APS may be greater than 1, but never less than 1. B. The APC plus APS may be less than 1, but never greater than 1. C. The APC plus APS may be greater than 1 or less than one. D. APC and APS added together must equal to 1.