A study conducted by the Moscow-based management consulting firm Strategy Partners found that average labor productivity in Russia is only 17 percent of labor productivity in the United States. What factors would cause U.S. labor productivity to be nearly size times higher than Russian labor productivity?
A. The size of the civilian labor force is larger in the U.S.
B. The size of the civilian labor force is larger in Russia, causing diminishing returns to set in
C. The U.S. has more capital available per worker and higher levels of technology
D. Russia overall has a smaller capital stock
Answer: C. The U.S. has more capital available per worker and higher levels of technology
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Incentive-based regulations tend to be more efficient than command-and-control regulations
a. True b. False Indicate whether the statement is true or false
The 1990s saw inflation fall and real growth increase in the U.S. and in many other countries. This is partially attributed to all of the following except:
A. redesign of many central banks. B. technological innovation. C. central banks focused more on exchange rates in a global environment. D. central banks became better at their jobs.
In order to discourage consumers from eating unhealthy fast food, the government is considering placing a tax on all fast food sales. Which of the following statements is true?
A. The tax on fast food will likely increase the demand for home cooked meals. B. A tax on fast food will only be effective if demand is perfectly inelastic. C. The tax on fast food will likely raise considerable revenue but will be unlikely to reduce the consumption of fast food by consumers. D. Given the numerous alternatives, consumers' demand for fast food is relatively inelastic and the tax will not likely work to discourage fast food consumption.
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease