Neoclassical growth theory
A) predicts that growth rates and incomes per person throughout the world will converge.
B) predicts that the faster growing underdeveloped nations will overtake and then surpass the industrial nations.
C) predicts that nations that enjoy a technological advantage will maintain that advantage.
D) makes no predictions about the relative growth or incomes among countries.
A
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The above figure shows the demand and supply curves for housing. What would be the effects of a rent ceiling equal to $500 per month?
A) a surplus equal to 3,000 apartments B) a shortage equal to 3,000 apartments C) a shortage equal to 250 apartments D) nothing because the rent ceiling has no effect on the equilibrium price and quantity
All of the following are true regarding tacit collusion except which one?
A) It is more likely when barriers to entry are high. B) It is more likely when the price elasticity of demand is large. C) It is an informal, unstated agreement. D) It harms buyers.
A major computer software company maintains a technical support center in a rural area and is the only employer in this region. Suppose the local labor supply curve shifts leftward due to net migration of workers from the area
What happens to the equilibrium outcome in this labor market? A) Labor demand shifts rightward, equilibrium wage and employment levels decline B) Labor demand shifts rightward, equilibrium wage and employment levels increase C) Labor demand curve remains the same, equilibrium wage and employment levels increase D) Labor demand curve remains the same, equilibrium wage increases, and employment declines
Refer to the graph shown. Assume that the market is initially in equilibrium at a price of $10 and a quantity of 500 units. In equilibrium, producer surplus is equal to:
A. 3,500. B. 1,500. C. 2,500. D. 5,000.