A British inventor sells a patent to a U.S. corporation for $25,000. If the U.S. financial account remains unchanged, ________.
A. the U.S. price level will fall and the unemployment rate will rise
B. the U.S. price level will rise and the unemployment rate will fall
C. both the U.S. price level and unemployment rate will rise
D. both the U.S. price level and unemployment rate will fall
Answer: B
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Endogenous growth theory tries to explain why
A) the growth rate of technological change varies across countries. B) capital is not subject to diminishing marginal returns. C) total factor productivity is the only determinant of labor productivity. D) balanced growth occurs in all economies.
The above figure shows the short-run production function for Albert's Pretzels. The marginal productivity of labor equals the average productivity of labor
A) for all levels of labor. B) at none of the levels of labor. C) only for the first worker. D) only for the fifth worker.
If a firm in a monopolistically competitive market has a demand curve that is shifting to the right, it will stop shifting when:
A. firms stop leaving the market. B. firms stop entering the market. C. the firm raises its price. D. the firm lowers its price.
Which are contractionary fiscal policies?
a. Increased taxation and decreased government spending b. Increased taxation and increased government spending c. No change in taxation and increased government spending d. Decreased taxation and no change in government spending