In general, the production and use of capital ________ the productivity of labor and normally ________ wages.
A. has no effect on; has no effect on
B. enhances; drives down
C. diminishes; drives down
D. enhances; drives up
Answer: D
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Answer the following statements true (T) or false (F)
1. The Keynesian analysis assumes that ample resources will be available to increase production if planned investment increases when the economy is at less than full employment. 2. The Keynesian analysis differs from classical analysis in its short-run analysis of the economy. 3. The monetarist school is primarily concerned with unemployment and recessions. 4. The monetarist school is more similar to the Keynesian school than the classical school. 5. The time lags lead monetarists to contend that monetary policy is counterproductive. 6. The new classical school holds that rational expectations tend to defeat the goals of monetary policy. 7. The new classical school contends that government fiscal policy is better than monetary policy in controlling inflation.
On average, someone with a Bachelor's degree is estimated to earn ____ times more than someone with a high school diploma.
A. 1.4 B: 1.5 C: 1.6 D: 1.7
Refer to Table 20-3. Assume the market basket for the consumer price index has three products—Cokes, hamburgers, and CDs—with the following values in 2011 and 2016 for price and quantity: The Consumer Price Index for 2016 equals
A) 75. B) 93. C) 108. D) 121.
Suppose k = y1/2, total factor productivity is constant and equal to 1, s = 0.40, and d = 0.10. When the economy reaches the steady state, investment per worker is ________
A) $0.80 B) $1.60 C) $3.20 D) $6.40