Assume the technology for producing personal computers improves and, at the same time, individuals discover new uses for personal computers so that there is greater utilization of personal computers. Which of the following will happen to equilibrium price and equilibrium quantity?
A) Price will increase; quantity cannot be determined.
B) Price will decrease; quantity cannot be determined.
C) Quantity will increase; price cannot be determined.
D) Quantity will decrease; price cannot be determined.
C
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Which of the following will limit the expansion of the money supply following a new deposit?
A) a re-depositing of all loan proceeds B) a strong demand for holding currency outside of commercial banks C) a strong demand for new loans D) failure of banks to voluntarily hold excess reserves
Assume that you start by hiring one worker at a time. Each time you hire an additional worker the average productivity remains the same
What does this imply about the marginal productivity of each worker that you hire? What will the marginal productivity function look like when graphed?
What is MFN status? How does the WTO reconcile the principle of equal treatment with the preferential treatment created by regional trade agreements?
What will be an ideal response?
Assume potential GDP is $16 T. If the economy is in a short-run recession, there will be labor ____, which will cause wages to begin to ___
a. surpluses; decrease b. shortages; increase c. surpluses; increase d. shortages; decrease