Suppose that an increase in capital per hour worked from $15,000 to $20,000 increases real GDP per hour worked by $500
If capital per hour worked increases further to $25,000, by how much would you expect real GDP per hour worked to increase if there are diminishing returns?
A) by less than $500 B) by more than $500 but less than $5,000
C) by exactly $500 D) by more than $5,000 but less than $20,000
A
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Lack of prudential regulation of capital markets in East Asia often led to
a. borrowing short term and lending long term b. borrowing and lending short term c. borrowing and lending long term d. borrowing long term and lending long term e. very little borrowing
Tickets to the Michigan-Notre Dame football game are usually sold out in advance of game day. This suggests that
a. the price of the tickets must be very high or else people would not consider them valuable b. the price is set below the equilibrium level c. the football stadium is relatively small d. everyone who attends the game will enjoy it e. the price is determined primarily by the fixed supply of tickets