If labor costs rise at the same time that the federal government decreases its purchases, in the short run
A) aggregate output and the price level will both increase.
B) aggregate output will increase, but the price level will fall.
C) aggregate output and the price level will both fall.
D) aggregate output will fall, but the price level may either increase or decrease.
D
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In the above figure, after the second worker is hired, the marginal product of labor is
A) increasing. B) diminishing. C) constant. D) zero.
A trade policy that protects domestic producers from certain actions taken by foreign governments or firms is
A) illegal under WTO rules. B) called a contingent protection policy. C) considered a beggar-thy-neighbor policy. D) intended to protect domestic consumers.
If the price elasticity of demand for a good is 4, then a 12 percent decrease in price results in a
a. 0.33 percent increase in the quantity demanded. b. 3 percent increase in the quantity demanded. c. 30 percent increase in the quantity demanded. d. 48 percent increase in the quantity demanded.
Which of the following statements is the best justification of the use of GDP per capita to compare welfare between nations?
A. GDP per capita is commonly used as a measure of welfare so it must be a valid measure. B. GDP per capita is independent of the country's currency so it is not subject to change due to variations in exchange rates. C. GDP per capita is calculated in a consistent and reliable way so it is not subject to measurement errors. D. GDP per capita is highly correlated with alternative measures of quality of life.