Which of the following changes would lead, according to the Solow model, to a higher level of long-run output per worker?
A. A lower level of capital per worker
B. A rise in the rate of population growth
C. A decrease in productivity
D. An increase in the saving rate
Answer: D
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The above figure shows the marginal private benefit and marginal social cost of a college education. If society's external benefits from college graduates is $10,000 each, then the
A) marginal social cost curve lies $10,000 to the left of the private marginal benefit curve. B) marginal social cost curve lies $10,000 to the right of the private marginal benefit curve. C) marginal social benefit curve lies $10,000 below the private marginal benefit curve. D) marginal social benefit curve lies $10,000 above the private marginal benefit curve.
When the interest rate is higher, the difference between the value of money today and tomorrow is smaller
a. True b. False Indicate whether the statement is true or false
As price rises, quantity supplied
A. rises. B. falls. C. remains the same.
Why are patents important to those who hold them?
A. Without patents, there would be considerably more price discrimination in the market. B. Without patents, there will no longer be economies of scale in production. C. Patents act as a barrier to entry, allowing monopoly profits. D. Patents actually do not matter because they do not guarantee that a firm will make a profit.