The Marshall-Lerner condition is less likely to hold when
A) imports and exports are very price-sensitive.
B) the trade deficit is large.
C) the marginal propensity to consume is very large.
D) the marginal propensity to consume if very small.
E) none of the above
E
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Which of the following is not one of the three pillars of productivity growth?
A. Rate of capacity utilization B. Rate of technological improvement C. Rate of improvement in workforce quality D. Rate of capital expansion
Given the information that follows, how much are (a) accounting profits and (b) economic profits? Sales, $750,000; explicit costs, $450,000; return you could have earned by investing your money elsewhere, $50,000; wages that you and your family members could have earned doing the same work for another firm, $70,000.
What will be an ideal response?