A. prices B. quantity quality Q.13 The function is an equation that tells us how much of the final good is produced with specified amounts of capital and labor A. Consumption B Production C Investment 014. Not only does the predictions grid show how the listed exogenous variables affect some variable, it lists all the exogenous variables that affect an endogenous variable A. endogenous B. exoyens homogenous QIS. Causes of the market failure are externalities and A. Bank power B. Institution power C. market power Q.16 The most important determinant of living standards is A productivity B. caming C. export Q17. In the longrun, inflation is almost always caused by excessive growth in the quantity of money, which causes the value of money to A. Rise B. Fall C stable Q18. The is an equation that tells us how much of the final good is produced with specified amounts of capital and labor. A. Production function B. Consumption function C. Investment function 019. In the short-run, increasing the quantity of money causes inflation to rise, but to fall A. unemployment B. employment C. jobs Q20. It basically is the assumption that in the long run, all the capital and labor that the economy has is fully utilized in A. Consumption B Production C. Investment Q21. Graphs are used to represent the various ways in which the are linked to each other A endogenous variables B. exogenous variables C. control variables 022. The idea is that capital and labor markets function well and ensure the equality of supply and demand A. Supply and demand B. Production and consumption C Saving and Investment Q23. The values of are determined outside of the model A. Endogenous variables B. Exogenous variables Cmixed varaibles Q24. Solow's theories helped to clarify the role of the accumulation of and emphasized the importance of technological progress as the ultimate driving force behind sustained economic growth A Physical stock B. Physical labor C. Physical capital Q25 is a useful summary statistic of the level of economic development in the sense that it is highly correlated with other measures of quality of life. A. per capita income B GDP C. Productivity