Economic growth can be defined as
A. the rate of growth in the productivity of labor.
B. the rate of growth of labor plus the rate of growth of capital plus the rate of growth in the productivity of labor and capital.
C. the rate of growth of labor plus the rate of depreciation of capital.
D. the rate of growth in the productivity of capital.
Answer: B
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Suppose the bobby pin industry is perfectly competitive. The price of a packet of bobby pins is $2.00. Pins and Needles, Inc is a firm in this industry and is producing 1,000 packets of bobby pins per day at the point where the MC = MR
The average cost of production at this output level is $1.50 per packet. a. What is the marginal cost of the 1,000th packet? b. Is this firm making an economic profit, zero economic profit, or an economic loss? How much? c. Is the firm in long-run equilibrium? Why or why not?
If the Fed wanted to prevent a change in money demand from affecting real GDP, which of the following rules would be feasible and allow the Fed to attain its goal?
a. Keep government spending constant b. Keep the money supply constant c. Keep money demand constant d. Keep taxes constant e. Keep the interest rate constant
If Lauren's substitution effects outweigh her income effects, her labor supply curve will
A. Appear vertical. B. Bend backward. C. Slope upward. D. Appear horizontal.
A movement along the production possibilities curve would imply that
A) the labor force has grown. B) productivity has increased. C) society has chosen a different set of outputs. D) productivity has declined because workers are demanding more leisure.