Which of the following is a condition for efficiency in the output market?
A) MRT = MPL/MPK
B) The marginal rate of substitution is the same for all customers.
C) The marginal rate of technical substitution must be the same for all producers.
D) The marginal rate of transformation must equal the marginal rate of substitution.
D
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Rapid population growth
a. was hailed by Thomas Robert Malthus as the key to future economic growth. b. tends to lead to higher levels of educational attainment. c. is the main reason that less developed nations are poor. d. may depress economic prosperity by reducing the amount of capital which each worker has to work with.
Which of the following statements is incorrect for an open economy?
a. A country can have a trade deficit, trade surplus, or balanced trade. b. A country that has a trade deficit has positive net capital outflow. c. Net exports must equal net capital outflow. d. National saving equals domestic investment plus net capital outflow.