Explain how rapid population growth can hinder labor productivity
What will be an ideal response?
Rapid population growth stretches all of a nation's resources to its limits. As a result, when a nation's population is growing too quickly, its ability to save and invest is greatly hindered. It is through savings and investment (including human capital investment) that a nation improves the ability of labor to be productive. In order for labor to be productive, there needs to be a certain level of capital investment to aid and ensure productivity. Thus, when savings and investment are reduced due to rapid population growth, the ability of labor to improve productivity is also reduced.
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The relationship between a pure-strategy Nash equilibrium and a dominant-strategy equilibrium is that
A) a dominant-strategy equilibrium is a special case of a pure-strategy Nash equilibrium. B) a pure-strategy Nash equilibrium is a special case of a dominant-strategy equilibrium. C) they are the same. D) there may not be a dominant-strategy equilibrium, but there always is a pure-strategy Nash equilibrium. E) they are mutually exclusive and exhaustive, in that a dominant-strategy equilibrium is the same thing as a mixed-strategy Nash equilibrium.
When the top marginal tax rate fell from 40 to 35 percent, with other things the same, the U.S. income tax system became:
A. more progressive. B. regressive. C. proportional. D. less progressive.
Neoclassical economists generally believe which of the following about human behavior?
A. While individuals attempt to make rational decisions, poor computational skills often lead to systematic errors. B. People care a lot about fairness and are often willing to sacrifice some of their own well- being to treat others fairly. C. When individuals make mistakes in decision making, they adjust to these errors and rarely repeat them. D. When individuals are selfless and act for the good of others, the invisible hand guides the collective behaviors to promote the good of society.
Which of the following statements best defines private costs?
A. They are costs borne by people other than those who commit the action. B. They are synonymous with social costs. C. They are internal in the sense that the buyer or seller must explicitly take them into account. D. They represent explicit costs incurred by producers in the private sector.