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Author Question: Country A has a lower stock of capital than Country B, but the supply of labor in both the countries ... (Read 97 times)

tiara099

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on: Jun 30, 2018
Country A has a lower stock of capital than Country B, but the supply of labor in both the countries is equal.
 
  A) An additional unit of capital will increase output in Country A only if there is an increase in the total efficiency units of labor.
  B) The increase in output due an additional unit of capital will be larger in Country A than in Country B.
  C) The increase in output due an additional unit of capital will be smaller in Country A than in Country B.
  D) An additional unit of capital will increase output in Country B only if there is an increase in the total efficiency units of labor.

Question 2

Suppose a bank has 300,000 in deposits, a reserve ratio of 5 percent, and bank reserves of 45,000. This bank can make new loans in the amount of
 
  A) 345,000. B) 45,000. C) 30,000. D) 15,000.


tashiedavis420

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Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

C


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