The increase in real GDP per hour of labor that results from an increase in capital per hour of labor ______.
A. is constant and independent of the quantity of capital
B. is larger at a small quantity of capital than at a large quantity of capital
C. is smaller at a small quantity of capital than at a large quantity of capital
D. decreases as technology advances
Answer: B. is larger at a small quantity of capital than at a large quantity of capital
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In the United States, the inflation rate has
A) remained almost constant over the past 25 years. B) risen and fallen since the 1970s. C) fallen as a result of OPEC oil price hikes. D) risen constantly over the past 30 years.
The labor-supply and labor-demand curves for the market intersect:
A. at the equilibrium wage. B. above equilibrium price. C. at the number of unemployed people in the market. D. All of these statements are true.
Graphically, a decrease in advertising will cause the demand curve to:
A. shift rightward. B. become steeper. C. become flatter. D. shift leftward.
Consider the following characteristics:
a. a market structure with barriers to entry b. demand curves that are easily identified c. firm cannot make zero profits in the long run d. firm can reap long-run profits. Which of the characteristics in the list above is shared by an oligopolist and a monopolist? A) a, b, c, and d B) a, b, and d C) a, c, and d D) a and d