Suppose that an economy's labor productivity fell by 3 percent and its total worker-hours remained constant between year 1 and year 2. We could conclude that this economy's:
A. real GDP declined.
B. capital stock increased.
C. production possibilities curve shifted outward.
D. actual production moved from one point to another on a fixed production possibilities curve.
A. real GDP declined.
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Risk averse people
A) will never hold bonds denominated in several different currencies because of transaction costs. B) will always hold bonds denominated in several different currencies because of transaction costs. C) may hold bonds denominated in several different currencies. D) may hold bonds denominated in several different currencies only if satisfying the well known interest party condition. E) will hold only domestic bonds because of the home bias effect.
A public good is nonrivalrous and excludable
a. True b. False Indicate whether the statement is true or false