If average labor productivity increases, then the same number of employed workers will always produce:
A. more output per person.
B. less output per person.
C. more total output.
D. less total output.
Answer: C
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Members of Congress are able to influence monetary policy, albeit indirectly, through their ability to
A) withhold appropriations from the Board of Governors. B) withhold appropriations from the Federal Open Market Committee. C) propose legislation that would force the Fed to submit budget requests to Congress, as must other government agencies. D) instruct the General Accounting Office to audit the foreign exchange market functions of the Federal Reserve.
Which of the following is a means of eliminating the undesirable effects of adverse selection?
A. Writing a contract to guarantee the quality B. Both a long-term relationship and writing a contract to guarantee the quality C. A long-term relationship D. None of the statements is correct.
Profit maximization occurs where
A) each factor is used up to the point where its marginal revenue product is equal to its marginal factor cost. B) each factor is used up to the point where its marginal physical product is equal to its marginal factor cost. C) average variable cost equals marginal cost. D) average variable cost equals average total cost.
According to Keynesian macroeconomists, prices adjust ________ to shocks, so the government should ________.
A. slowly; fight recessions B. rapidly; do little C. slowly; do little D. rapidly; fight recessions