Use the information provided in Table 7.4 below to answer the question(s) that follow.
Table 7.4Inputs Required to Produce a Product Using Alternative TechnologiesTechnologyUnits of CapitalNumber of EmployeesA 836B 1224C 1616D 24 12Refer to Table 7.4. If the hourly price of capital is $40 and the hourly wage rate is $10, which production technology should be selected?
A. A
B. B
C. C
D. D
Answer: A
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In calculating the unemployment rate, part-time workers over the age of 16 are counted as
A) not in the labor force. B) employed if they are part-time workers for noneconomic reasons and unemployed if they are involuntary part-time workers. C) not in the working-age population. D) unemployed. E) employed.
As Betsy's consumption of coffee increases, her marginal utility from coffee
A) increases. B) decreases. C) remains unchanged. D) increases first and then decreases.
Based on the answer above, the price for bus rides _____________ and the quantity demanded for rides ____________
a. Decreases; decreases b. Decreases; increases c. Decreases; uncertain d. Increases; uncertain
Which of the following is not correct?
a. Government debt can continue to rise forever. b. If the government uses funds to pay for investment programs, on net the debt need not burden future generations. c. Social Security does not transfer wealth from younger generations to older generations. d. The average U.S. citizens' share of the government debt represents less than 2 percent of her lifetime income.