Answer the following statement(s) true (T) or false (F)
1. When an increase in marginal productivity increases workers' nonlabor income, the effect on the quantity of labor supplied is ambiguous.
2. A permanent increase in workers' marginal productivity causes employment to rise by more than if the increase were temporary.
3. A technological improvement that is permanent is more likely to raise employment than one that is temporary.
4. Education is partly investment but also partly consumption.
5. All other things being equal, firms that provide on-the-job training to workers will tend to pay higher wages.
1. True
2. False
3. False
4. True
5. True
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A plot of points representing the rate of inflation and the unemployment for the United States since 1953 reveals that
A) there does not appear to be any trade-off between the two variables. B) there is an inverse relationship between the two variables. C) there is a positive relationship between the two variables. D) none of the above.
The growing importance of export demand for American agriculture has:
A. reduced the international value of the dollar. B. had no significant effect on the stability of the demand for farm products. C. destabilized the total demand for farm products. D. stabilized the total demand for farm products.
An oligopoly is an industry with just one firm.
Answer the following statement true (T) or false (F)
As you move down the production possibility frontier, the absolute value of the marginal rate of transformation
A. increases. B. initially decreases, then increases. C. decreases. D. initially increases, then decreases.