As labor productivity increases, which of the following shifts in the labor market should occur?
A. Supply of labor should shift to the left.
B. Demand for labor should shift to the right.
C. Demand for labor should shift to the left.
D. Supply of labor should shift to the right.
Answer: B
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An implementation lag is the time it takes: a. for policy makers to decide what to do
b. for the chosen policy to have its full impact on the economy. c. to identify trouble in the economy and to assess its severity. d. to put a selected policy into action. e. before a policy's effects on the economy are noticed by ordinary people.
The position of the long-run aggregate supply curve corresponds to the economy's: a. full-employment real GDP
b. maximum possible level of employment. c. natural level of personal consumption expenditure. d. maximum possible level of personal consumption expenditures. e. maximum possible price level.
Sheila and Jim live in an island where they are the only two workers. Sheila can either catch 10 fish or gather 40 pounds of berries each day, and Jim can either catch 8 fish or gather 24 pounds of berries each day. Both of them work 200 days per year. At current world prices 1 fish trades for 3.5 pounds of berries. How much of each good can be produced if each worker fully specializes according to comparative advantage?
A. 1,600 fish and 8,000 pounds of berries B. 1,600 fish and 4,800 pounds of berries C. 3,600 fish and 12,800 pounds of berries D. 2,000 fish and 8,000 pounds of berries
In the above table, when output is 8 units, average variable costs are
A. $4.50. B. $3.50. C. $1.25. D. $4.75.