If technological change is "labor augmenting," then
A) output per worker declines, output per unit of capital increases.
B) "effective labor input" increases, output per unit of capital declines.
C) output per worker increases, output per unit of capital is constant.
D) Both output per worker and output per unit of capital change.
C
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Moving along a short-run aggregate supply curve, resource prices ________, the money rate wage ________, and potential GDP ________
A) do not change; changes; does not change B) do not change; does not change; changes C) change; does not change; does not change D) do not change; does not change; does not change
If the autarky price of S (in terms of T) were lower in country A than in country B,
A) A has a comparative advantage in S. B) B has a comparative advantage in T. C) A has a comparative disadvantage in T. D) All of the above.
The gains from specialization in international trade accrue strictly from the principle of absolute advantage
Indicate whether the statement is true or false
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point B to Point D, the opportunity cost of motorcycles, measured in terms of hybrid cars,
A. increases B. remains constant. C. initially increases, then decreases. D. decreases.