Emigration causes __________ in the capital-labor ratio and __________ in the return to capital.
a. increases; decreases
b. increases; increases
c. decreases; decreases
d. decreases; increases
Ans: a. increases; decreases
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Aggregate demand and supply curves have been widely used to analyze the performance of the macroeconomy. Figure 5-3 shows four diagrams that represent different changes in the macroeconomy. Choose the diagram that best represents the situations described in the following questions.Figure 5-3
Which graph in Figure 5-3 best represents the economic conditions of the American economy in 2001?
A. 1 B. 2 C. 3 D. 4
If a firms cuts inputs in half, and output falls by more than half, then there are
A) increasing returns to scale. B) decreasing returns to scale. C) constant returns to scale. D) decreasing marginal returns.
On a given linear demand curve, as price increases demand becomes ________:
A. more variable. B. more negative. C. less elastic D. more elastic.
In the above figure, the farmer faces a trade-off between beans and wheat equal to
A. one-to-one. B. three-to-one. C. one-to-four. D. one-to-two.