A decrease in the productivity of a factor of production will
A. cause a firm to move down the marginal revenue product curve.
B. cause a firm to move up the marginal revenue product curve.
C. shift its marginal revenue product curve to the right.
D. shift its marginal revenue product curve to the left.
Answer: D
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Which of the following will cause net exports to rise?
a. A depreciation of the domestic currency b. A fall in foreign income c. Higher foreign tariffs on domestic goods d. Inflation in domestic economy e. A depreciation of the foreign currency
Countercyclical fiscal policy is
a. fiscal policy designed to intensify the business cycle in the same way that we fight fire with fire b. fiscal policy designed to moderate the severity of the business cycle c. fiscal policy designed to make the economy grow faster than the rate of growth represented by the long term trend d. fiscal policy that does not depend on government intervention in the economy e. fiscal policy that moves in one direction only: increases in government spending that are designed to make the economy grow faster
Which of the following statements about real GDP per capita is correct?
A. Real GDP per capita is inversely related to quality of life measures such as productivity and life expectancy. B. Real GDP per capita is more accurately recorded in IACs than in LDCs. C. Countries with higher real GDP per capita have lower per capita energy consumption. D. Real GDP per capita in the United States is about seven times larger than in Ethiopia.
If the price of a textbook rises and then students purchase fewer textbooks, an economic model can show a cause-and-effect relationship only if which of the following conditions holds:
A. students' incomes fall. B. tuition decreases. C. the number of students increases. D. everything else is constant.