Assuming an economy is already experiencing full employment, then it must produce more consumer goods and fewer capital goods if it wishes to experience greater rates of economic growth over time

a. True
b. False
Indicate whether the statement is true or false


False

Economics

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If the U.S. government decided to pay off the national debt by creating money, what would be the most likely effect?

a. a substantial reduction in real GDP b. a deflationary collapse c. rapid inflation d. an increase in the trade surplus

Economics

Given the production function Y = A if output grows by five percent, the capital input grows by five percent, and the labor input grows by two percent, calculate the Solow residual

Calculate the growth rates of output per worker and capital per worker.

Economics

Figure 7-16


In Figure 7-16, as we move from A to B,

a.
the relative price of machines falls.

b.
total cost falls.

c.
output increases.

d.
labor becomes less productive relative to capital.

Economics

In 2003, Sony Corporation announced reform in its management structure. The reform included an increase in the number of outside directors on the Board of Directors, a requirement to separate the Chairman of the Board from the CEO, and greater inclusion of outside directors on the Nomination Committee. Analyze these changes from the perspective of separation of decision control from decision management.

What will be an ideal response?

Economics