Because of diminishing marginal productivity
A) the labor supply curve is not vertical.
B) nominal wages are sticky in a downward direction.
C) the labor demand curve is negatively sloped.
D) households save only a small share of their income.
C
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Potential GDP is reached when
A) unemployment is zero. B) there is no cyclical unemployment. C) unemployment is above full employment. D) unemployment is below full employment. E) the natural unemployment rate equals zero.
Which of the following expeditions is associated with Bartholomeu Dias?
a. Rounding the Cape of Good Hope b. Sailing from Portugal to India and back to Portugal c. Sailing around the world d. Reaching South America e. Exploring the interior landmass of Canada
The government’s fiscal policy is its plan for managing ______________ through its spending and taxing programs
A. aggregate demand B. aggregate supply C. international trade D. None of these
Suppose that there are two firms, each generating three tons of SO2. Suppose also that the government has set a target abatement level of two tons. Under a policy of uniform abatement with permits, each firm would receive:
A. two non-transferable pollution permits. B. two pollution permits which they could sell to each other. C. one pollution permit with a value equal to that firm's cost of abating one ton of SO2. D. one pollution permit with a value equal to the market price for a pollution permit.