If the population growth rate is 2%, the incremental capital output ratio is 3, the saving ratio is 24%, and the depreciation rate is 5%, the rate of growth of income is
(a) 1%.
(b) 2%.
(c) 3%.
(d) 5%.
(e) 8%.
C
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Recall the Application. Unlike the Euro-zone, the United States does not just have a single currency, but also has a ________ that provides transfers to areas in economic distress
A) single central bank B) unified fiscal system C) national trade agreement D) federally funded emergency account
If labor productivity growth slows down in a country, this will
A) slow down the increase in real GDP per capita. B) accelerate the increase in nominal GDP. C) slow down the increase in nominal GDP. D) accelerate the increase in real GDP per capita.
The number of shares of Biggie Corporation stock outstanding in 2013 was 100 million. In 2013, Biggie stock paid a dividend of $2.50 per share and its dividend yield was 2 percent. If the price-earnings ratio is 20, then Biggie's total earnings in 2013 amounted to
a. $15.6 million. b. $250 million. c. $160 million. d. $625 million.
How would the prices of sodas and cookies decreasing affect utility maximization?
A. Your budget line would not change but your indifference curve would get steeper to consume more of both goods. B. Your indifference curve would shift outward (to the right) and you could consume more. C. Your budget line would shift outward (to the right) and you could consume at a higher indifference curve. D. Your indifference curves would shift inward (to the left) and you would consume less of each good but have more extra money.