People had been expecting the price level to be 120 but it turns out to be 122 . In response Robinson Tire Company increases the number of workers it employs. What could explain this?
a. both sticky price theory and sticky wage theory
b. sticky price theory but not sticky wage theory
c. sticky wage theory but not sticky price theory
d. neither sticky wage theory nor sticky price theory
a
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Some economists argue that the productivity slowdown of the mid-1970s to the mid-1990s was due to changes in oil prices that
A) increased production costs, causing firms to reorganize production to conserve energy, which reduced output per worker. B) decreased production costs, causing firms to reorganize production to conserve energy, which reduced output per worker. C) increased production costs, causing firms to reorganize production to conserve energy, which increased output per worker. D) decreased production costs, causing firms to increase production, which reduced output per worker.
As a result of money in an economy,
A) transaction costs are higher than would be the case in a barter economy. B) people are greedier than in a barter economy. C) real Gross Domestic Product (GDP) and economic growth are greater than they would be in a barter economy. D) stealing exists and people have to find ways to prevent theft.
Which of the following is most likely a topic of discussion in economics?
a. Families must decide whether to spend their money on a new car or a fancy vacation. b. Nations must choose whether to put more of the budget into police and fire protection or into the school system. c. Towns must choose whether to put more of the budget into police and fire protection or into national defense. d. Nations must decide whether to devote more funds to national defense or to police and fire protection.
In autumn, the Connecticut apple market is perfectly competitive. If market demand increases—resulting, say, from a change in consumer taste—the demand curves faced by each individual firm will, in the long run
a. become vertical b. become less elastic c. remain unchanged d. shift leftward e. shift downward