If the price of inputs falls and the budget deficit rises due to an increase in government spending, then the:
a. Price index rises, and real GDP falls.
b. Price index is uncertain, and real GDP rises.
c. Price index rises, and the change in real GDP is uncertain.
d. Price index falls, and real GDP rises.
e. Price index falls, and real GDP falls.
.B
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Consider a perfectly competitive? firm's marginal revenue product of labor curve shown in the diagram. Using the line drawing tool?, draw a new line that shows the effect of a decrease in the demand for the product produced by this firm. Label this line ?'MRP1?'. Carefully follow the instructions? above, and only draw the required objects.
For the perfectly competitive? firm, the marginal revenue product is
A.marginal physical product times the wage rate.
B.marginal physical product times the product price.
C.the same thing as marginal physical product.
D.the same thing as marginal factor cost.
Which of the following is true of an externality?
a. An externality enhances the efficiency of the market system. b. An externality is not an economic problem because it is external to the market. c. An externality is a cost borne by the people who are directly or indirectly involved in the production of a good or service. d. An externality accrues to someone who had nothing to do with the production or consumption of a good or service. e. An externality refers to some unexpected change in the equilibrium price or quantity of a product.
Which of the following is an example of a job that illustrates why wages differ due to education?
a. an attorney b. a file clerk c. a cashier d. a fast food cook
If the opportunity cost of corn to wheat is 3:1 in the United States and 5:1 in France, both countries would benefit from trade if the actual terms of trade between corn and wheat were 4:1.
Answer the following statement true (T) or false (F)