Holding other factors constant, if food prices decline relative to the prices of other products, then the real wages of agricultural workers will ________ and employment of agricultural workers will ________.
A. increase; increase
B. decrease; decrease
C. increase; decrease
D. decrease; not change
Answer: B
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Which of the following is included as investment in GDP?
i. cars produced during the year but unsold at the end of the year ii. new capital equipment produced and purchased during the year iii. purchases of a company's stocks and bonds A) iii only B) i only C) ii only D) i, ii, and iii E) i and ii
Implicit costs will be zero in the long run
Indicate whether the statement is true or false
Human capital is increased when a firm makes investments that raise workers' productivity.
A. True B. False C. Uncertain
Which of the following is NOT a key economic feature of the European Union (EU)?
A. London's dominance as Europe's financial center B. A single market that promotes free movements of goods, services, financial capital, and people among EU member countries C. A customs union, which imposes common tariffs on imports from non-EU D. A common currency, the euro, used by all member countries