In the neoclassical growth model, if two countries are exactly the same but one has a lower population growth, we would expect that country to have
a. higher output, a higher capital-to-labor ratio, and higher per capita output growth in the steady state.
b. the same output and capital-to-labor ratio, but higher per capita output growth in the steady state.
c. higher output, a higher capital-to-labor ratio, and the same per capita output growth in the steady state.
d. higher output, the same capital-to-labor ratio, and the same per capita output growth in the steady state.
B
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The figure above shows the market for brooms. Which of the following could lead to the production of fewer than 600 brooms?
A) a monopoly B) a deadweight loss C) subsidies D) an external cost E) a big tradeoff
Refer to the graph below. If the output level is Q2, then there will be:
A. Allocative efficiency
B. Maximum deadweight losses
C. Maximum consumer surplus
D. Greater marginal benefits than marginal costs of the product