The supply curve of labor to industry in the Lewis model is horizontal if there is surplus labor in agriculture. This condition persists as long as
a. the marginal product of labor is less than the average product of labor in agriculture.
b. the marginal product of labor in agriculture is less than the marginal product of labor in industry.
c. there are diminishing returns to labor in agriculture.
d. the marginal product of labor in agriculture is zero.
D
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In the Gordon growth model, a decrease in the required rate of return on equity
A) increases the current stock price. B) increases the future stock price. C) reduces the future stock price. D) reduces the current stock price.
The CPI's approach is to
a. track the cost of the CPI market basket, which is the collection of goods and services that the typical consumer buys. b. track the cost of the CPI market basket, which is the collection of every good and service that is for sale in the U.S. c. track the cost of housing, and food and beverage expenditures. d. track the cost of the CPI market basket, which is the collection of every good that is for sale in the U.S. e. track the cost of the CPI market basket, which is the collection of goods that the typical consumer buys.