A technological breakthrough in using photons for computers will increase the productivity of those working with computers a hundredfold. You would expect this breakthrough to shift the
A. labor supply curve up, reducing the quantity of labor demanded at any given real wage.
B. labor supply curve down, raising the quantity of labor demanded at any given real wage.
C. marginal product of labor curve up and to the right, raising the quantity of labor demanded at any given real wage.
D. marginal product of labor curve down and to the left, reducing the quantity of labor demanded at any given real wage.
Answer: C
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Spot transactions
A) involve immediate settlement. B) may only take place in face-to-face trading. C) take place on-the-spot, rather than on an organized exchange. D) are relatively unimportant in financial markets.
The supply of a good is more price elastic
a. the more alternatives there are to producing the good in question b. the more broadly the market for the good is defined. c. the shorter the time horizon over which it is measured. d. the higher the cost of production. e. the more elastic the demand for that good.
Firms pay efficiency wages because these wages:
A. increase worker productivity. B. maximize short-run profits. C. increase worker rivalry. D. minimize short-run costs.
In an article regarding Bangladesh's economy, the author suggests that the government give tax breaks on investment dollars, research and development, and donations to educational institutions. Suppose the multiplier in Bangladesh is 2. As a result of enacting the proposed policies, which of the following describe possible outcomes in the short run?
I. A $20 billion increase in investment will increase aggregate expenditure by $40 billion II. the AE curve will shift upward III. there will be and unplanned increase in inventories a) I, II, & III b) I & II only c) I & III only d) II & III only