Suppose the capital stock increases by 10% and the number of employed workers increases by 5%. Given this information, explain what will happen to output and to output per worker
What will be an ideal response?
The level of output will obviously increase because the amount of inputs has increased. Given that the capital stock increases by an amount greater than the amount of workers, we know that the capital labor ratio has increased. This implies that output per worker has also increased.
Economics
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For most of the years since 1981, the United States has had
A) a current account deficit. B) a large official settlements balance. C) an official settlements account deficit. D) a capital and financial account deficit. E) balanced trade.
Economics
The telephone is an example of a product with network externalities
What will be an ideal response?
Economics