Investment increases when there ________ stock prices.
A. a consolidation of
B. are deflated
C. is a run up in
D. are overvalued
Answer: C
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If the single-input producer choice set is convex, the marginal product of labor curve must have a negative slope that is getting steeper with increases in labor input.
Answer the following statement true (T) or false (F)
Your classmates from the University of Chicago are planning to go to Miami for spring break, and you are undecided about whether you should go with them. The round-trip airfare is $600, but you have a frequent-flyer coupon worth $500 that you could use to pay part of the airfare. All other costs for the vacation are exactly $900. The most you would be willing to pay for the trip is $1,400. Your only alternative use for your frequent-flyer coupon is for your trip to Atlanta two weeks after the break to attend your sister's graduation, which your parents are forcing you to attend. The Chicago-Atlanta round-trip airfare is $450. Should you use the frequent flyer coupon to go to Miami?
A. No, because there are no benefits in the trip. B. Yes, your benefit is equal to your cost. C. No, your benefit is less than your cost. D. Yes, your benefit is more than your cost.
An increase in the real wage would result in a
A. shift of the labor demand curve, causing a decrease in the number of workers hired by the firm. B. movement along the labor demand curve, causing a decrease in the number of workers hired by the firm. C. shift of the labor demand curve, causing an increase in the number of workers hired by the firm. D. movement along the labor demand curve, causing an increase in the number of workers hired by the firm.
The amount of spending on imports depends solely on income.
Answer the following statement true (T) or false (F)