Figure 7-15
For a firm at equilibrium, at point A in Figure 7-15,
A. the price of labor is high relative to the price of machines.
B. the MPP of labor is greater than the MPP of machines.
C. the MPP of labor is less than at point B.
D. output is higher than at point B.
Answer: C
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An example of a government policy to enhance technological progress is:
A. the provision of publicly-funded education. B. government support for basic research. C. the construction of an interstate highway system. D. maintaining a well-functioning legal system.
Refer to Figure 4-16. Suppose the market is initially in equilibrium at price P1 and now the government imposes a tax on every unit sold. Which of the following statements best describes the impact of the tax? For demand curve D1
A) the producer's share of the tax burden is the same whether the supply curve is S1 or S2. B) the producer bears a greater share of the tax burden if the supply curve is S2. C) the producer bears a greater share of the tax burden if the supply curve is S1. D) the producer bears the entire burden of the tax if the supply curve is S1 and the consumer bears the entire burden of the tax if the supply curve is S2.
The aggregate demand curve shifts to the left when there is ________
A) autonomous tightening of monetary policy B) an increase in the nominal interest rate C) an increase in inflation D) all of the above E) none of the above
Growth in employment can result from either an increase in labor supply or an increase in labor demand
a. True b. False