Suppose a nation increases the quantity of a product it exports. To attract the labor resources needed to support the increased production, it must:
a. pay higher wages.
b. lay off workers.
c. borrow capital abroad.
d. find new sites for production near population centers.
Ans: a. pay higher wages.
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Explain why GDP was never intended to be a measure of social well being
Which of the following statements best describes the role played by prices in a command economy such as the former Soviet Union?
a. Prices were used to allocate resources. b. Prices played the same role as in a market economy. c. Prices were used to ration final goods and services but not to allocate resources. d. None of these statements is descriptive.
Each month, the Bureau of Labor Statistics calculates unemployment by
a. surveying all workers in the economy. b. surveying a random sample of households. c. making projections based on census data. d. surveying large business and government employers.
If the economy is experiencing less than full-employment, the Keynesian school recommends that the government:
A. do nothing to stimulate the economy. B. undertake fiscal policy to stimulate aggregate demand. C. undertake fiscal policy to stimulate aggregate supply. D. balance the budget to stimulate aggregate demand.