A decrease in the stock of capital may
A. decrease potential GDP.
B. increase labor productivity.
C. increase real GDP.
D. decrease skilled labor.
Answer: A
You might also like to view...
If input prices are constant, a firm with increasing returns to scale can expect
A) costs to double as output doubles. B) costs to more than double as output doubles. C) costs to go up less than double as output doubles. D) to hire more and more labor for a given amount of capital, since marginal product increases. E) to never reach the point where the marginal product of labor is equal to the wage.
According to the principle of asset valuation, the value of any asset is equal to
a. the sum of all the future benefits it generates b. the revenue it generates during its first year c. the sum of the present values of all the future net benefits it generates d. the ratio of its final year's benefits to its price e. the sum of all future benefits it generates minus its price
The expected effects of fiscal contraction are
A. higher real interest rates. B. exchange rate depreciation. C. increased trade deficit. D. All of these responses are correct.
When an Egyptian firm purchases a cement mixer from Slovakia,
a. Egyptian investment does not change, Egyptian net exports decrease, Egyptian GDP decreases, Slovakian net exports increase, and Slovakian GDP increases. b. Egyptian investment increases, Egyptian net exports decrease, Egyptian GDP is unaffected, Slovakian net exports increase, and Slovakian GDP increases. c. Egyptian investment decreases, Egyptian net exports increase, Egyptian GDP is unaffected, Slovakian net exports decrease, and Slovakian GDP decreases. d. Egyptian investment increases, Egyptian net exports do not change, Egyptian GDP increases, Slovakian net exports do not change, and Slovakian GDP is unaffected.