Explain why wage rates might rise at Joe's Quik-Print Shop if Joe replaces his aging copy machines with state-of-the-art copy machines
The improvement in technology will boost the productivity of Joe's employees. Their MRP will rise, and since Joe's labor demand curve is the MRP curve, he will be willing and able to hire more workers and pay higher wage rates.
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Which of the following most accurately describes world population growth?
a. World population has increased steadily during the past 6,000 years. b. World population has exhibited significant cyclical patterns of growth and decline. c. World population was relatively small until 1750, after which it increased rapidly. d. World population was small until World War II, after which it increased very quickly.
Suppose the marginal tax rate is 37 percent for an income level of $50,000 and 39 percent for an $80,000 income. This implies that the underlying tax structure is _____ in nature
a. fixed b. progressive c. regressive d. lump-sum e. proportional
In the open economy of Sildavia, government spending during 2005 was $30 billion, consumption was $70 billion, taxes were $20 billion, and GDP was $100 billion. If investment spending in Sildavia during 2005 was $10 billion, we can conclude that Sildavia registered:
A. a net capital inflow of $10 billion. B. capital inflows of $10 billion and capital outflows of $20 billion. C. a trade surplus of $20 billion and a financial deficit of $20 billion. D. a net capital outflow of $10 billion.
Contractionary fiscal policy will lead to an increase in government borrowing.
a. true b. false