Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential
B. higher; higher
C. higher; potential
D. lower; higher
Answer: A
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Suppose that the production function for the economy is Y = AK1/4L3/4. Assume that real GDP is $8,000 billion, capital stock is $32,000 billion, and the labor supply is 120 million (or 0.120 billion) workers
Total factor productivity for this economy is A) 16.50 B) 1,016.52 C) 2,083.33 D) 2,933.65
Assume that Joe and Sarah, from the figure shown, are also dating, in addition to working together on the joint school project. Further assume that Joe is madly in love with Sarah, who is an excellent student. Sarah tells Joe that she will break up with him if he does not put forth high effort on this project. This future punishment by Sarah is an example of:
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.
A. a commitment strategy.
B. an effort optimization strategy.
C. an ultimatum.
D. a bargaining strategy.
Which of the following is a transactions account?
a. Currency b. Travelers' checks c. A savings account d. A credit card balance e. A demand deposit
Brandon Wallace tutors economics students. He finds that when he charges $5 per hour, students demand a total of 30 hours of tutoring per week; however, when he raises his rate to $8 per hour, they demand only 26 hours of tutoring. a . Calculate the
price elasticity of demand for Brandon's tutoring. b. Is demand for Brandon's tutoring price elastic, unit elastic, or price inelastic? Which rate should he charge to maximize his revenue? c. Brandon finds that he can raise his rate to $10 per hour during the week before final exams and students will continue to demand 26 hours of tutoring. Explain why this is so.