Suppose a country is much richer than the others in the Solow growth model. What happens in the long run?
A) The other countries catch up to the rich one.
B) The rich country grows the fastest.
C) The rich country becomes poorer than the others.
D) Nothing.
A
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Over $140 billion was spent on transportation in 2007, with the lion's share being handled by state and local governments. Roughly 78 percent of transportation spending was allocated to
a. enforcement of fuel efficient standards b. the highway system c. bridges d. city streets e. traffic lights
If there is an improvement in technology that affects only Aggregate Supply and a nation's wealth falls due to sagging stock market, then:
a. Aggregate demand falls, and aggregate supply rises. b. Aggregate demand and aggregate supply rise. c. Aggregate demand rises, and aggregate supply falls. d. Neither aggregate demand nor aggregate supply change. e. None of the above.
When a firm in a monopolistically competitive market earns zero economic profit, its product price must equal marginal cost
a. True b. False Indicate whether the statement is true or false
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
According to the graph shown, if this economy were to open to trade, domestic producers would increase:
A. prices by $11. B. production by 75 units. C. prices by $5. D. production by 35 units.