In Table 9.4, Market 3 would be in equilibrium if buyers believed plums accounted for:

A. 11.11% of the market.
B. 22.22% of the market.
C. 33.33% of the market.
D. 66.67% of the market.

Answer: C

Economics

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According to the Solow model, an increase in the capital—labor ratio will

A) always reduce steady-state consumption per worker. B) always increase steady-state consumption per worker. C) reduce steady-state consumption per worker if the capital—labor ratio is below the Golden rule capital stock. D) increase steady-state consumption per worker if the capital—labor ratio is below the Golden rule capital stock.

Economics

In the open-economy ISLM model, the goods market equilibrium condition is

A) output = consumption + investment + government spending. B) output = consumption + investment + government spending - tax. C) output = consumption + investment + government spending + net export. D) output = potential output.

Economics