If a country devotes its resources to acquiring more physical capital it will:
A. not have less overall GDP in the future.
B. have more current consumption.
C. not face the investment trade-off.
D. have more GDP per capita in the future.
Answer: D
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When do Federal Reserve notes become part of the money supply (M1)? When they are
A) deposited in the vaults of commercial banks. B) printed by the Bureau of Engraving. C) received by the Federal Reserve Banks. D) spent by the public on newly-produced goods. E) withdrawn from commercial banks by the public.
Which of the following statements is false?
A) In the short run: total cost = fixed cost + variable cost. B) Variable costs are costs that change as output changes. C) An explicit cost is a nonmonetary opportunity cost. D) In the long run there are no fixed costs.
Barney Oats Co produces 5 varieties of flavored oats. A market survey done by the company revealed that its competitor Sloan co. had a larger share in the market. It was found out that Barney's share of output was one-tenth that of Sloan Co Immediately
afterward, the CEO of Barney Oats decided to reduce the number of flavors and reassign tasks to workers based on their skills. Will the manager's decision increase the output of Barney Oats? Give reasons to support your answer.
If a firm adopts a labor-augmenting piece of technology, it will:
A. increase the marginal product of labor. B. decrease the marginal product of labor. C. decrease the marginal supply of labor. D. increase the marginal supply of labor.