When firms increase capital stock, the productivity of their workers increases

Indicate whether the statement is true or false

TRUE

Economics

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Suppose that a lawn mowing services production function for lawns mowed in a week is M = (LK)1/2, where L is labor hours and K is the amount of capital (mowers and trimmers). The expansion path depends on

a. the wage rate only. b. the rental rate only. c. both the wage and rental rates. d. neither the wage nor rental rates.

Economics

Refer to the given information. On the basis of its balance of payments position, and other things equal, we can expect the international value of Zippo's currency to:



The plus items below are “export-type” entries and the minus items are “import-type” entries in the balance of payments for the hypothetical country of Zippo.


A.  increase.
B.  decrease.
C.  remain constant.
D.  gyrate up and down.

Economics