Which of the following is true of capital deepening?
a. It refers to an increase in the level of capital per worker in a society.
b. It refers to an increase in the stock of capital in a society
c. It occurs when there is a decrease in the cost of capital in a society.
d. It occurs when society displaces human capital with physical capital.
a
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If public goods can be produced more efficiently, then
A) public goods increase, and private goods may increase or decrease. B) public goods production stays the same, and private goods increase. C) public goods and private goods both increase. D) public goods production falls, and private goods production rises.
The conclusion that a monopoly results in lower output and higher prices than perfect competition relies on the assumption that
A) the demand curve for a monopoly is horizontal. B) consumers are ignorant of the effects of monopoly. C) the costs of production are the same whether the industry is perfectly competitive or a monopoly. D) elasticity of demand varies along the market demand curve.
Suppose a Lexus LS400 and a Mercedes C300 are considered to be of equivalent value. The Lexus sells for 6,000,000 Japanese yen in Tokyo and the Mercedes sells for 50,000 euros in Stuttgart. Using the purchasing power parity theory, explain the exchange rate between the yen and the euro
If the producers bear a larger portion of tax incidence than the buyers, which of the following must be true?
A. Their supply curve must be more elastic than the buyers demand curve. B. Their supply curve must be more inelastic than the buyers demand curve. C. They are not as business savvy as the buyers. D. They face a very inelastic demand.