If real GDP increases over time, the cost of living will
A) always remain constant.
B) always decrease.
C) always increase.
D) either remain constant or increase.
E) More information is needed to determine how the cost of living changes.
E
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When the marginal product of labor increases as the amount of labor employed increases,
a. the additional worker has made other workers more productive b. the firm also must have increased the amount of capital c. the firm is experiencing economies of scale d. there has been an improvement in the available technology e. the law of diminishing returns has been violated
An increase in consumers' incomes raises the equilibrium price and quantity of fine clothing
Indicate whether the statement is true or false
Which of the following statements about agriculture in the U.S. is not correct?
a. From the 1950s to today, agricultural output has increased about five times. b. Because technological improvements increase the supply of a product for which demand is inelastic, an individual farmer would be better off not adopting the new technology. c. Increasing the supply of agricultural products typically benefits consumers but harms farmers. d. Technological improvements typically increase supply and decrease revenue for farmers.
Analysis that involves value judgments about economic policies is
A. microeconomics. B. normative economics. C. positive economics. D. macroeconomics.