If an economy is growing at 2 percent a year but its rate of technology growth is 1 percent a year, then this country must be:
a. below its steady state level of capital per worker.
b. expected to grow slower in the future.
c. has a savings rate that is too low.
d. none of the above.
B
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When individuals are debating whether to supply labor, they think about all of the following except:
A. the cost in terms of forgone leisure. B. the benefit of more income for each hour worked. C. whether the benefits outweigh the costs. D. the level of profits they bring to the firm.
Describe how a speculator can improve social welfare when he correctly anticipates that future demand will be higher than suppliers expect.
What will be an ideal response?
Which of the following statements is an example of confusing association and causation?
A. Senator Jones believes that more tax revenue should be distributed to the poor. B. A map includes roads, but not every restaurant, telephone pole, and C. Interest rates rise when it rains, all other factors constant. D. When the price of Coca-Cola increases, consumers buy more Pepsi, all other factors constant.
Suppose an economy’s real GDP is $50,000 in year 1 and $55,000 in year 2. What is the growth rate of its GDP? Assume that population was 100 in year 1 and 105 in year 2. What is the growth rate in GDP per capita?
Please provide the best answer for the statement.