In the RBC model, the importance of "intertemporal substitution" of labor supply is ________, which results in a rather ________ labor supply curve
A) denied, flat
B) denied, steep
C) emphasized, flat
D) emphasized, steep
C
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Suppose the demand for milk is relatively inelastic. What happens to sales revenue if the government imposes a price floor above the free-market equilibrium price in the market for milk?
A) Sales revenue remains unchanged. B) Sales revenue rises. C) Sales revenue falls. D) It cannot be determined without information on prices.
Which of the following problems does not affect small firms:
a. scarcity of appropriately-skilled workers b. consumer preference for imported products c. adapting modern technology consistent with the scale of output d. government officials' preference for larger firms e. all of the of the above are problems for small firms
The problem of scarcity
a. arises only in poor countries. b. exists because the price of goods is too high. c. exists because of limited resources. d. will eventually be solved by better planning.
If England uses one week's time to produce ten yards of cloth or two barrels of wine and Portugal uses one week's time to produce twelve yards of cloth or six barrels of wine, England has the comparative advantage in both goods
a. True b. False Indicate whether the statement is true or false