Price elasticity of demand along a linear, downward-sloping demand curve increases as price falls
a. True
b. False
Indicate whether the statement is true or false
False
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The chain-weighted output index
A) uses only the current year's prices to calculate growth in real GDP. B) uses prices for the current year and the previous year to calculate growth in real GDP. C) must be calculated only every other year. D) is an inaccurate way to measure growth in real GDP and so has been replaced by the "nominal-to-real" index.
Vertical integration is
a. the expansion of a firm into earlier or later stages of production b. an attempt by a firm to allow market prices to coordinate more transactions c. an attempt by a firm to minimize shirking d. an attempt by a firm to minimize the need to coordinate transactions within its boundaries e. a way for a firm to accumulate information about its competitors
No economist today would claim that
a. marginal productivity analysis is either just or unjust. b. the marginal productivity theory of distribution is a theory of the demand side of the pertinent market. c. payments are made not to factors of production but to the people who happen to own them. d. a productive input's MRP depends in part on how much of it is employed.
Efer to the above figure. Suppose the economy's initial equilibrium is represented by the intersection of LRAS 2 and AD 2. Now there is an increase in labor productivity which increases total planned production at any given price level and aggregate demand remains stable. The resulting change in the economy's long-run equilibrium position would be represented by a
A. Movement from A to B B. Movement from B to D C. Movement from C to B D. Movement from C to D