Over the past year, productivity grew 1%, capital grew 2%, and labor grew 2%. If the elasticities of output with respect to capital and labor are 0.3 and 0.7, respectively, how much did output grow?
A) 1%
B) 2%
C) 3%
D) 4%
C
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Marginal cost
A) increases as more is produced. B) remains constant as more is produced. C) decreases as more is produced. D) decreases as marginal benefits decrease.
Which of the following will be increased during a contractionary monetary policy?
a. money supply b. the return to saving c. borrowing d. spending
When the firm increases output and the costs rise disproportionately slower, then the long-run average cost curve is ________ and the firm is experiencing ________.
A. horizontal; constant returns to scale B. downward sloping; constant returns to scale C. upward sloping; diseconomies of scale D. downward sloping; economies of scale
If a currency appreciates, a country’s net exports
A. fall and AD increases. B. rise and AD increases. C. fall and AD decreases. D. rise and AD decreases.