The multiplier effect is the series of ________ increases in ________ expenditures that result from an initial increase in ________ expenditures
A) induced; investment; autonomous
B) induced; consumption; autonomous
C) autonomous; consumption; induced
D) autonomous; investment; induced
Answer: B
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Labor demand is more elastic the greater the elasticity of substitution between labor and capital because
A. a firm's technology is slow to change. B. firms always have the option of substituting capital for labor. C. the firm's output price falls when the firm produces more output. D. a firm is less willing to pay higher labor costs if it is easy for the firm to substitute capital for labor. E. workers supply more labor when their wage increases.
The least costly way to produce any given level of output is indicated by
A. the point of intersection between the isoquant corresponding to that level of output and the Y-axis. B. the point of intersection between the isoquant corresponding to that level of output and the X-axis. C. the isocost line corresponding to that level of output. D. the point of tangency between an isocost line and the isoquant corresponding to that level of output.
Refer to Table 8-18. What is nominal GDP in 2016 when 2011 is the base year?
A) $28,885 B) $11,790 C) $11,200 D) $10,275
Refer to Figure 5-3. In the absence of any government intervention, the private market
A) underproduces by Qo - Qm units. B) underproduces by Qn - Qm units. C) overproduces by Qn - Qm units. D) overproduces by Qo - Qm units.