1. Kathleen is considering expanding her dress shop. If interest rates rise she is

Group of answer choices

A. less likely to expand. This illustrates why the supply of loanable funds slopes downward.

B. more likely to expand. This illustrates why the supply of loanable funds slopes upward.

C. less likely to expand. This illustrates why the demand for loanable funds slopes downward.

D. more likely to expand. This illustrates why the demand for loanable funds slopes upward.

2. If per capita GDP in the US is growing at 2% per year, approximately how long will it take for per capita income to double in the US?

Group of answer choices

A. 50 years

B. 35 years

C. 100 years

D. 70 years

3. Which of the following is NOT one of the four major determinants of productivity:

Group of answer choices

A. Physical capital per worker.

B. Human capital per worker.

C. Income per worker.

D. Technological knowledge.

4. Foreign investment

Group of answer choices

A. is a way for poor countries to learn the state-of-the-art technologies developed and used in richer countries.

B. is viewed by economists as harmful to a countrys growth.

C. reduces the wages of workers.

D. All of the above are correct.

5. Diminishing marginal product of capital means that each additional unit of capital adds

Group of answer choices

A. more output than the previous unit of capital.

B. less output than the previous unit of capital.

C. the same amount of output as the previous unit of capital.

D. nothing to GDP, so we should stop using capital and just give up.