Suppose that land and labor are substitute resources. If the wage rate rose, the employment of land would rise only if
A. the output effect outweighed the substitution effect.
B. the substitution effect outweighed the output effect.
C. the substitution effect was equal to the output effect.
B. the substitution effect outweighed the output effect.
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From 1980 to 2000 the labor force participation rate generally ________ and from 2000 to 2014 the rate generally ________
A) increased; decreased B) decreased; decreased C) increased; increased D) decreased; increased
By analyzing aggregate demand through its component parts, we can conclude that, everything else held constant, a decline in the inflation rate causes
A) an increase in real interest rates, an increase in investment spending, and a decline in aggregate output demand. B) a decline in real interest rates, a decrease in investment spending, and an increase in aggregate output demand. C) a decline in real interest rates, an increase in investment spending, and an increase in aggregate output demand. D) an increase in real interest rates, a decline in investment spending, and a decline in aggregate output demand.
Which of the following countries has a flat SAS curve?
A) Brazil B) U.S. C) Argentina D) All of the above.
If the government wants to encourage the consumption of a particular good, they should enact:
A. a subsidy to buyers, since they deserve the benefit more than the producers. B. a subsidy on either buyers or sellers, since they will both have the same effect on the market. C. a subsidy to buyers, since they want to affect consumption of the good. D. a subsidy to sellers, since they want more to be produced and offered for sale.