The percentage change in one's real income can be approximated by the percentage change in
A. price level minus the percentage change in nominal income.
B. nominal income minus the percentage change in the price level.
C. nominal income divided by the percentage change in price level.
D. price level divided by the percentage change in nominal income.
Answer: B
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A firm's value of marginal product of labor curve
A) is flatter than its demand for labor curve. B) is steeper than its demand for labor curve. C) is its demand for labor curve. D) bends backward.
Suppose that labor is measured on the horizontal axis and capital is measured on the vertical axis. At an interior solution:
A. MRTSLK = PL/PK. B. MRTSLK = - PL/PK. C. MRSTLK = PK/PL. D. MRTALK = - PK/PL.
Which of the following statements about the U.S. national debt is not correct?
A. The national debt represents both a liability and asset to future generations. B. The primary economic costs of the debt are being passed on to future generations. C. The primary burden of the debt is incurred when the deficit-financed activity takes place. D. Future generations will bear some of the debt burden when crowding out occurs.
Suppose that this graph describes the current labor market for high school teachers:
Suppose supply of labor decreases. At the new equilibrium, wages would be ________ and ________ teachers would be hired.
A. lower; fewer B. higher; fewer C. higher; more D. lower; more