Financial markets promote economic efficiency by

One Sunday afternoon, your mother tells you and your brother that you can quickly make some money by helping her wash dishes. Both of you decide to help her. Once both of you are done with the work, your mother gives you a $20 bill

She also says that you can divide the money between yourself and your brother in any proportion you want, but if your brother does not accept the amount he is being given, she will take all of the money back. a) How much money should you offer your brother if he prefers more money to less? b) How much money should you offer to your brother if you know that your brother prefers fairness to money?

The Solow residual helps explain growth that derives from

a. increasing the size of the labor force. b. increasing the size of the capital stock. c. increasing the capital-labor ratio. d. anything except increases in the size of the labor force or the capital stock.