For wages to be higher without sacrificing jobs, productivity must decrease.
Answer the following statement true (T) or false (F)
False
Higher productivity will improve the marginal revenue product of labor, so the employer will hire a greater quantity of labor at any given wage rate.
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Consider a demand curve for peaches. Which of the following movements will be observed if the price of peaches decline at a point in time?
a. The demand curve will rotate inward at the given price level. b. The will be a movement up along the demand curve. c. The demand curve will rotate outward at the given price level. d. There will be a downward movement along the demand curve. e. The demand curve will become steeper.
If a government spends $20 billion on new bridges that have an expected life of 20 years, the expenditures would:
a. Increase government spending and government expenses by the full $20 billion even though a business would expense them over the 20-year period. b. Not change government spending and therefore would not change the government deficit because they are capital expenditures. c. Increase total government spending by the full amount (i.e., $20 billion), but only $1 billion of it would be considered part of the budget deficit because the $20 billion is amortized over the 20 years. d. Initially increase the budget deficit by an amount equal to $20 billion, but only $1 billion of it would be considered part of the government spending because the $20 billion is amortized over the 20 years.
In a situation of free trade,
A. countries with comparative advantage will export more than countries with comparative disadvantage import. B. the total quantity of an item exported will be greater than the total quantity imported. C. importing countries will always produce some good, so that total quantity imported is less than total quantity exported. D. the total quantity of an item exported will equal the total quantity imported.
________ shifts the IS curve to the right.
A. An increase in government spending B. An increase in the price level C. A decrease in the Z factors D. A decrease in government spending