In to the Solow model, what is capital deepening? How can a country achieve capital deepening?
What will be an ideal response?
Capital deepening occurs when the amount of capital per worker increases. A country can do this by increasing its saving and investment in capital.
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Suppose that good X is on the horizontal axis and all other goods (measured in dollars) are on the vertical axis in the consumer-choice diagram. If the consumer gains $10 in income, then
a. the new budget line is parallel to and lies 10 units to the left of the old budget line. b. the budget line shifts up by 10 dollars, with no change in the slope. c. the vertical intercept of the budget line shifts up by $10, but the horizontal intercept remains unchanged. d. the slope of the budget line increases by 10 percent.
The demand curve represents the relationship between:
A. price and quantity demanded with everything else held constant. B. income and quantity demanded with everything else held constant. C. consumer preferences and quantity demanded with everything else held constant. D. income and price demanded with everything else held constant.
Suppose that we learn that hotels in Los Angeles generally operate with an average vacancy rate of 15 percent (in other words, 85 percent of the hotel rooms are filled with guests). Given this information about excess capacity, we would judge this market to be
A. an oligopoly. B. a perfectly competitive market. C. a monopolistically competitive market. D. a monopoly.
Which of the following statements about an export subsidy on a particular product is accurate?
A. An export subsidy increases the net national well-being of a large exporting country. B. An export subsidy can switch the product from being exported to being imported. C. An export subsidy reduces the amount available in the domestic market of the exporting country and increases the amount imported by the foreign country. D. An export subsidy increases the price paid by foreign buyers, relative to the price that local consumers pay for the product.