Suppose that two countries share identical levels of total factor productivity, identical labor force growth rates and identical savings rates. According to the Solow model
A) the country with the greater initial level of output per worker will grow more rapidly than the country with the smaller initial level of output per worker.
B) the country with the smaller initial level of output per worker will grow more rapidly than the country with the greater initial level of output per worker.
C) both countries will have the same growth rates of output per worker, even if they start out with different levels of output per worker.
D) if both countries start out with different levels of income per worker, both countries may have different growth rates of output per worker, but we cannot be certain which country will have the higher growth rate of output per worker.
B
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Refer to Table 4-6. The equations above describe the demand and supply for Aunt Maud's Premium Hand Lotion. What are the equilibrium price and quantity (in thousands) for Aunt Maud's Lotion?
A) $30 and 20 thousand B) $60 and 30 thousand C) $20 and 60 thousand D) $20 and 30 thousand
The term "surplus" refers to a:
A. situation in which the quantity supplied is less than the quantity demanded. B. situation in which the quantity demanded is less than the quantity supplied. C. market that sells secondary goods. D. signal that producers need to increase the price of the good.
If in market equilibrium the true marginal cost of producing a good exceeds the marginal cost incurred by the firm,
a. not enough of the product is being produced. b. the price charged for the good is too high. c. the good produces a positive externality. d. the good produces a negative externality. e. the government should produce the good.
Economists generally support
a. trade restrictions. b. government management of trade. c. export subsidies. d. free international trade.