If the wage falls, we know for sure that the firm will produce more in the long run but we cannot be sure whether it will use more or less capital.
Answer the following statement true (T) or false (F)
True
Rationale: See Graph 13.8 in the text.
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If smartwatches are considered substitutes for smartphones, the decline in the price of smartphones would, all else equal,
A) decrease the demand for smartwatches. B) increase the demand for smartwatches. C) increase the quantity of smartwatches demanded. D) decrease the quantity of smartwatches demanded.
Better health allows people to work harder, which raises a country's total income. This indicates that in effect, better health
A) shifts out a country's production possibilities frontier. B) is a primary cause of price increases. C) increases consumer surplus. D) reduces the incentive to work.
In an open economy with fixed exchange rates, monetary policy is most effective at increasing real income if
A) capital mobility is high. B) capital mobility is low. C) capital mobility is perfect. D) monetary policy is ineffective with fixed exchange rates.
The largest proportion of Medicaid spending goes to which of the following groups?
a. Blind and disabled b. Elderly c. Children d. Adults