Suppose the federal government makes it mandatory for employers to provide health insurance to all employees. Assuming the new mandate applies to homebuilders, the
A) demand for construction workers is likely to increase.
B) supply of new homes is likely to increase.
C) supply of new homes is likely to decrease.
D) supply of new homes will remain the same; businesses will simply "pass" the higher costs on to consumers.
C
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A decrease in investment leads to ________ in aggregate demand and ________ in real GDP
A) no change; a decrease B) a decrease; an increase C) an increase; an increase D) a decrease; a decrease E) an increase; a decrease
Firms in a small economy anticipated that inventories would grow over the past year by $750,000, and over that year, inventories grew by exactly $750,000. This implies that
A) aggregate expenditure was greater than GDP that year. B) there was an unplanned decrease in inventories that year. C) there was an unplanned increase in inventories that year. D) aggregate expenditure and GDP were equal that year.
Which of the following did not occur during the Industrial Revolution?
a. worker productivity increased b. factories became larger c. direct supervision of labor decreased d. division of labor increased e. fewer stages of production were organized in the household
In the long run a company that produces and sells candy bars incurs total costs of $1,200 when output is 2,400 candy bars and $1,400 when output is 2,900 candy bars. The candy bar company exhibits
a. diseconomies of scale because total cost is rising as output rises. b. diseconomies of scale because average total cost is rising as output rises. c. economies of scale because total cost is rising as output rises. d. economies of scale because average total cost is falling as output rises.