The approach to understanding the determination of real GDP and the price level that emphasizes incomplete adjustment in the prices of many goods is
A) the classical model.
B) the Keynesian model.
C) Say's law.
D) the aggregate demand model.
B
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Over the last 40 years in the U.S
a. output and real wages have increased, while the capital-to-labor ratio has remained constant. b. output, real wages, and the capital-to-labor ratio have all increased. c. output has increased while real wages and the capital-to-labor ratio has remained constant. d. output and real wages have increased, while the capital-to-labor ratio has fallen.
Profit can be earned by buying _____________ and selling ____________________
A) at one price; at the same price B) low; high C) high: low D) none of the above
Alex and Ben are both loggers wanting to harvest timber from the same forest. Alex prefers to harvest and replant at a sustainable rate; Ben wants to harvest as many trees as possible to maximize short-run profit, and then move on. They face the same
production costs. Refer to the information given. The forest is more likely to be harvested and replanted at a sustainable rate if: A. property rights are well-defined and enforced. B. property rights are weak or nonexistent. C. there is no government protection of property rights and the parties can negotiate a settlement. D. Ben is given sole ownership of the property.
Refer to the graph below. At which point is average product (AP) at its maximum?
A. Point A
B. Point B
C. Point C
D. Point D