Aggregate supply tends to grow because
a. there are more workers in the economy every year.
b. there is more capital in the economy every year.
c. technology tends to improve every year.
d. All of the above are correct.
d
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If both firms in a duopoly cheat on a collusive agreement, the price ________ and both firms are ________
A) falls; better off B) rises; worse off C) falls; worse off D) rises; better off
Economists argue that unhindered international trade leads to an efficient outcome. What is meant by "an efficient outcome" in this context?
A) an outcome in which wages are roughly equal around the world B) an outcome in which the standard of living is roughly equal around the world C) an outcome in which an individual can choose to specialize in a certain line of work and be certain that he or she can make a living at that until retirement D) an outcome in which resources are devoted to their most efficient use
Which of the following is not an exchange rate system?
a. Purchasing power parity b. Fixed exchange rates c. Flexible exchange rates d. Fixed rates within bands e. Managed floating
Steady-state investment per worker is positively related to the capital-labor ratio because the higher the capital-labor ratio,
A. the less the economy needs to equip new workers with the same high level of capital. B. the greater the amount of resources available for capital investment. C. the more investment per worker is required to replace depreciating capital. D. the lower the capital depreciation rate.