Suppose that real domestic output in an economy is 20 units, the quantity of inputs is 10, and the price of each input is $4. Answer the following question on the basis of this information. Refer to the information. The level of productivity is:
A. 20.
B. 10.
C. 5.
D. 2.
D. 2.
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The demand for loanable funds curve shows the relationship between the quantity of loanable funds demanded and
A) the capital stock. B) the expected rate of profit. C) the real interest rate. D) depreciation. E) the price level.
Which of the following statements is correct?
A) Open market purchases are expansionary and open market sales are contractionary. B) Open market purchases are contractionary and open market sales are expansionary. C) Both open market purchases and open market sales are expansionary. D) Both open market purchases and open market sales are contractionary.
In his book The Road to Serfdom, Friedrich Hayek argued that the growth of government
a. was essential if the ups and downs of the business cycle were going to be controlled. b. must be increased if western democracies were going to survive. c. could only be achieved if monetary policy-makers were willing to expand the supply of money more rapidly. d. endangered freedom and moved Western democracies toward tyranny, just as it had done in Nazi Germany and the Soviet Union.
The investment rate is the percentage of total output allocated to
A. The production of new plants, equipment, and structures. B. Education and training for the workforce. C. Consumer retirement accounts. D. Saving.