An increase in the level of total factor productivity will lead to
A) an increase in the capital-labor ratio and an increase in real GDP worker.
B) an increase in investment and a decrease in depreciation.
C) an upward shift of the break-even investment line and an increase in the capital-labor ratio.
D) a higher rate of dilution and lower break-even investment.
A
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Suppose that the income elasticity of demand for peanut butter is 0.75. Which of the following is TRUE?
A) Peanut butter is a normal good, because income elasticity is positive. B) Peanut butter is an inferior good, because income elasticity is positive. C) Peanut butter is a normal good, because income elasticity is less than 1. D) Peanut butter is an inferior good, because income elasticity is less than 1.
When individuals shift funds from money market mutual funds to no-load stock and bond mutual funds,
a. the growth rate of M1 will decline but the growth of M2 will be unaffected. b. the growth rate of M2 will decline but the growth of M1 will be unaffected. c. the growth rate of both M1 and M2 will decline. d. the growth rate of both M1 and M2 will increase.
In the U.S., studies have shown that as real incomes have risen, per capita demand for food has been increasing by a much lower percentage
Indicate whether the statement is true or false
Market pricing as a kind of automatic signalling system that responds to changes in relative scarcities and rapidly redirects economic activity is part of
What will be an ideal response?