If labor costs are 60 percent of production costs, then a 15 percent increase in wage rates would increase production costs by:
A. 60 percent
B. 45 percent
C. 15 percent
D. 9 percent
D. 9 percent
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Which one of the following is not an example of final goods in national income accounting?
A. Desktop computer purchased by an executive for business use B. Tractor purchased by a construction company C. Lumber and steel beams purchased by a construction company D. Laptop computer purchased by an executive for personal use
Tampering with the price mechanism
A. can be efficient for a while. B. cannot be attempted in a market economy. C. can enhance societal welfare if done properly. D. often produces undesired side effects.
The productivity standard says
A) that everyone should have exactly the same income. B) that the age-earnings cycle should determine income. C) that people should be compensated on the basis of what they produce. D) that people should be compensated on the basis of their need.
If the economy was producing at point D and moved to point C
A. the unemployment rate would decrease.
B. the production possibilities frontier would shift outward.
C. the production possibilities frontier would shift inward.
D. None of these choices are true.