In the Solow growth model, the steady state occurs when
A) investment = depreciation.
B) depreciation = 0.
C) the capital-labor ratio = 1.
D) saving = investment.
A
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The formula for the yield to maturity, i, on a discount bond is
A) i = (Face value - Discount price)/Discount price. B) i = (Discount price - Face value)/Discount price. C) i = (Face value - Discount price)/Face value. D) i = (Discount price - Face value)/Face value.
Two firms, Acme and FirmCo, have access to five production processes, each of which has a different cost and gives off a different amount of pollution. The daily costs of the processes and the corresponding number of tons of smoke emitted are shown in the table below.ProcessABCDE(smoke/day)(4 tons/day)(3 tons/day)(2 tons/day)(1 tons/day)(0 tons/day)Cost to Acme ($/day)$750$800$1,000$1,400$2,000Cost to FirmCo ($/day)$500$750$1,200$2,200$4,000 Suppose the firms are both currently using process A. If the government requires each firm to reduce pollution by 20 percent, then the firms will adopt process ________, and a total of ________ tons of smoke will be emitted each day.
A. B; 16 B. A; 18 C. D; 8 D. C; 12
A system that guarantees that depositors will not lose money even if the bank goes bankrupt is known as
A. deposit insurance. B. banking regulation.. C. reserve. D. None of the above is correct.
When a U.S. oil company purchases oil from Saudi Arabia and the Saudi Arabian firm uses the proceeds from the sale to buy transportation services from the U.S., U.S. net exports ________ and the capital inflow to the United States ________.
A. are negative; is negative B. are unchanged; is unchanged C. are negative; is positive D. are positive; is negative