Suppose that the Australian economy initially uses 50 billion hours of labor to produce $5 trillion of real GDP. If 50 billion more hours are employed and Australia's real GDP increases by $4 trillion more,
A) Australia's production function exhibits diminishing returns.
B) Australia's production function exhibits increasing returns.
C) Australia has an Okun Wedge of $1 trillion.
D) Australia has positive Lucas Wedge.
E) Australia's production possibility frontier has a positive slope.
A
You might also like to view...
It has been noted that when the price of a good increases, people purchase less of the good. This is an example of
A) macroeconomic analysis. B) irrational behavior. C) normative economic analysis. D) positive economic analysis.
Countries that are authoritarian in nature ______.
a. can pursue policies to increase economic growth b. seldom achieve meaningful economic growth c. become more democratic as their economies grow d. are not interested in economic growth
The figure below illustrates a tariff. On the graph, Q represents quantity and P represents price.
Figure 17-11
Refer to Figure 17-11. Government revenue raised by the tariff is represented by the area
a.
E.
b.
B + E.
c.
D + E + F.
d.
B + D + E + F.
Which factor always results in an increase in price and quantity?
A. an increase in supply with no change in demand B. an increase in supply and a decrease in demand C. a decrease in demand and supply D. an increase in demand with no change in supply