Refer to the information provided in Figure 25.2 below to answer the question(s) that follow.
Figure 25.2Refer to Figure 25.2. Suppose the money demand is currently at Point B. A movement to Point A could be caused by
A. a decrease in nominal income.
B. an increase in the interest rate.
C. an increase in nominal income.
D. a decrease in the interest rate.
Answer: A
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Refer to Table 11-2. What is the marginal product of the 4th worker?
A) 230 bushels B) 57.4 bushels C) 50 bushels D) 12.4 bushels
Improvements in the productivity of labor will tend to: a. increase the supply of labor. b. increase wages
c. decrease the supply of labor. d. decrease wages.
The principle of comparative advantage asserts that
a. not all countries can benefit from trade with other countries. b. the world price of a good will prevail in all countries, regardless of whether those countries allow international trade in that good. c. countries can become better off by exporting goods, but they cannot become better off by importing goods. d. countries can become better off by specializing in what they do best.
Microeconomics examines the
A) total household expenditures. B) behavior of the economy as a whole. C) aggregate business spending. D) decision making undertaken by individual households.