Assume that an economy experiences both positive population growth and technological progress. Once the economy has achieved balanced growth, we know that the capital per worker ratio (K/N) is
A) constant.
B) growing at a rate of gA - gN.
C) growing at a rate of gN.
D) growing at a rate of gA.
E) growing at the same rate as Y/N.
E
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Informing people of social norms is likely to get:
A. more people to act that way, which is always positive. B. more people to act that way, which can be a problem if policymakers are trying to change typical behavior. C. more people to act that way, which is always negative. D. less people to act that way, because people like to be unique.
If the production of a good generates a positive externality, then:
A. there will be deadweight loss at the market equilibrium quantity. B. production of the good is harmful. C. total economic surplus will be maximized at the market equilibrium quantity. D. the government should tax producers of the good.
IBM buys treasury bonds from the UK as part of its investment portfolio. This is an example of:
A. importing. B. foreign direct investment. C. exporting. D. foreign portfolio investment.
An economic policy is:
A. a generalization about the workings of an abstract economy. B. a physical or mental structure that significantly influences economic decisions. C. a standard people use when they determine whether a particular activity or behavior is acceptable. D. an action taken by the government to influence the course of economic events.