If wage rates fall at the same time that labor productivity increases, what is the effect on short-run aggregate supply (SRAS)?
A) SRAS falls.
B) SRAS remains constant.
C) SRAS rises.
D) SRAS may rise, fall, or remain constant.
C
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Two economists from Northwestern University estimated the benefit households received from subscribing to broadband Internet service. The economists found that
A) the average consumer of broadband Internet service received a marginal benefit equal to $36. B) one month's benefit to consumers who subscribe to broadband Internet service is about $890 million. C) most consumers of broadband Internet service were not willing to pay more than $36 per month. D) the consumer surplus from dial-up Internet service exceeded the consumer surplus from broadband Internet service.
If an increase in the growth rate of the money supply results in an equal increase in the rate of inflation with no effect on any real variables, we say that
A) the classical dichotomy fails. B) money is neutral. C) money is superneutral. D) money is the most preferred store of value.
Assume that data are available on other characteristics of the subjects that are relevant to determining the experimental outcome. Then including these determinants explicitly results in
A) the limited dependent variable model. B) the differences in means test. C) the multiple regression model. D) large scale equilibrium effects.
When a developing country relies on export promotion,
a. it concentrates on producing for its domestic market b. it builds its technological and educational base and then can make more complex products for export c. domestic producers have sufficient protection that they can afford to become inefficient d. its government must intervene more in markets e. None of the answers is correct