What is on the horizontal axis when we draw a total product curve?
a. total cost
b. marginal cost
c. quantity of output
d. quantity of a variable input
Ans: d. quantity of a variable input
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If an industrial union is able to negotiate a wage above the market-clearing wage, the non-union wage in other industries will
a. increase b. decrease c. increase, if the union can restrict the supply of labor d. increase, if the union can increase the supply of labor e. decrease due to the strike-breaking activity of the firm
Suppose that there is an increase in expected future disposable income and simultaneously an increase in the expected profitability of investment
As a result, the equilibrium real interest rate ________ and the equilibrium quantity of loanable funds ________. A) rises; decreases B) falls; might increase, decrease, or not change C) rises; might increase, decrease, or not change D) rises; increases E) falls; increases
In the foreign exchange market, the supply curve for dollars slopes upwards because
A) as the exchange rate rises, imports become more expensive, and more dollars are supplied to pay for the imports. B) as the exchange rate rises, imports become cheaper, and more dollars are supplied to pay for the increase in the quantity of imports. C) as the exchange rate rises, more dollars are supplied since the profit from selling dollars falls. D) supply curves always slope upwards.
Which of the following helped transform the budget deficits of the early 1990s into surpluses later in the decade?
a. Rapid growth in the number of persons moving into the retirement phase of life during the 1990s b. A reduction in defense expenditures following the end of the Cold War c. A 1997 increase in the tax rate imposed on income derived from capital gains d. A reduction in Social Security and health-care benefits during the 1990s