Refer to the information provided in Table 31.1 below to answer the question(s) that follow.Table 31.1PeriodQuantity of Labor (L)Quantity of Capital (K)Total Output (Y)1 50 50 2002 60 50 2203 70 50 2354 80 50 245Refer to Table 31.1. During Period 3, labor productivity is equal to
A. 0.3.
B. 1.96.
C. 3.36.
D. 4.7.
Answer: C
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The figure above shows the U.S. production function. How would an increase in unemployment benefits be shown in the figure?
A) a movement from point C to point B B) a movement from point A to point B C) an upward shift or rotation of the production function D) a downward shift or rotation of the production function E) None of the above because the effects of an increase in unemployment benefits cannot be shown in the figure.
Kristen has an income of $450 per year to spend on music CDs and movies on DVDs. Initially the price of a CD is $15 and the price of a DVD is $22.50. The indifference curves in the figure above (I1, I2, and I3 ) reflect Kristen's preferences
If the price of a DVD falls to $18, Kristen will buy A) 10 DVDs and 15 CDs per year. B) 15 DVDs and 12 CDs per year. C) 12.5 DVDs and 11 CDs per year. D) 13 DVDs and 15 CDs per year.
When the growth rates of actual and potential GDP diverge, they usually diverge because
a. actual GDP growth equals potential GDP growth. b. actual GDP growth falls below potential GDP growth. c. potential GDP growth rates fall below actual GDP growth rates. d. potential GDP growth rates fluctuate while actual GDP growth rates remain stable.
The marginal tax rates on the richest Americans when Ronald Reagan was elected and when he left office were
a. 28 percent and 50 percent, respectively. b. 70 percent and 40 percent, respectively. c. 40 percent and 70 percent, respectively. d. 50 percent and 28 percent, respectively.