In the neoclassical growth model, if two countries are exactly the same but one has a lower depreciation rate, we would expect that country to have
a. higher output, a higher capital-to-labor ratio, and the same per capita output growth in the steady state.
b. higher output, a higher capital-to-labor ratio, and higher per capita output growth in the steady state.
c. the same output and capital-to-labor ratio, but higher per capita output growth in the steady state.
d. higher output, the same capital-to-labor ratio, and the same per capita output growth in the steady state.
A
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The supply of labor curve has a ________ slope because as the real wage rate rises, ________
A) positive; the opportunity cost of leisure rises B) negative; households work more hours C) positive; the opportunity cost of leisure falls D) positive; firms offer more jobs E) negative; firms hire fewer workers
As a firm moves along its long-run average cost curve, it is adjusting the size of its factory to the quantity of production
a. True b. False Indicate whether the statement is true or false