Suppose there are four industries. Labor costs are 20 percent of total costs in A, 40 percent in B, 60 percent in C, and 80 percent in D
A ten percent increase in the price of labor will cause industry ________ to reduce quantity demanded of labor by the largest proportion. A) A
B) B
C) C
D) D
D
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The marginal propensity to consume is a measure of the additional consumption that results from a one-dollar increase in disposable income
a. True b. False Indicate whether the statement is true or false
If the real U.S. GDP was $10 trillion in 2000 and the U.S. population was 280 million, the per capita real GDP would have been closest to
A. $35,714 per person. B. $28,000 per person. C. $2,800 per person. D. $5,000 per person.
A patent or copyright is a barrier to entry based on
A) ownership of a key necessary raw material. B) large economies of scale as output increases. C) government action to protect a producer. D) widespread network externalities.
If the Fed's monetary policy reaction function does not change, then when inflation decreases the Fed responds by ________ the real interest rate, which ________ consumption and investment spending, which ________ output.
A. decreasing; increases; increases B. decreasing; decreases; decreases C. increasing; decreases; decreases D. increasing; increases; decreases