The Romer model is distinct from the Solow model in that the former assumes that ________
A) technology is fixed
B) an increase in price affects quantity demanded, rather than demand
C) some labor is devoted to producing new technology
D) output per worker is fixed
C
Economics
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If an increase in x (the variable on the horizontal axis) from 6 to 8 units causes a decrease in y (the variable on the vertical axis) from 4 to 3 units, the slope equals
A) 2. B) -2. C) 1/2. D) -1/2.
Economics
If firms differentiate their products in different ways and charge different price because of these differentiation factors, then
A) demand must be perfectly elastic. B) the law of one price is not violated. C) transactions costs are being ignored. D) the firm must not be maximizing profit.
Economics