What is break-even investment, and what happens to the break-even level of investment when the growth rate of the labor force either increases or decreases?
What will be an ideal response?
Break-even investment is the level of investment necessary to keep the capital—labor ratio constant. The break-even level of investment will rise when the growth rate of the labor force increases and will fall when the growth rate of the labor force decreases.
Economics
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The nation as a whole is better off from trade as long as the gains from the winners exceed the losses from the losers
Indicate whether the statement is true or false
Economics
Which of the following is an advantage of fixing exchange rates?
A. making the prices of foreign goods more flexible in the domestic market B. making residents more mobile across countries C. limiting foreign exchange risk D. eliminating trade deficits
Economics