Firms will only adopt more automated methods of production when
a. they reduce the need for workers.
b. they lower production costs.
c. they lengthen the production process.
d. other firms in the industry are doing it.
B
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Refer to the given information. In Singsong the domestic real cost of each chicken:
Answer the question on the basis of the following information about the cost ratios for two products—fish (F) and chicken (C)—in countries Singsong and Harmony. Assume that production occurs under conditions of constant costs and these are the only two nations in the world. Singsong: 1F = 2C Harmony: 1F = 4C A. is ½ fish. B. is 2 fish. C. increases with the level of fish caught. D. decreases with the level of fish caught.
If taxes are a lump sum amount, then the AE function is
A. vertical. B. downward sloping. C. flatter than if taxes are a function of income. D. steeper than if taxes are a function of income.
Suppose that consumers decide to walk to work more frequently and drive cars less. Companies that make walking shoes hire workers, while automobile companies lay off workers. This is an example of
a. frictional unemployment created by sectoral shifts. b. frictional unemployment created by efficiency wages. c. structural unemployment created by efficiency wages. d. structural unemployment created by sectoral shifts.
In the intermediate range of the aggregate supply curve, if government spending increases caused the aggregate demand curve to shift outwards, which of the following ismostlikely to occur?
A. The price level and real GDP will both rise. B. The price level will not change, but real GDP will increase. C. The price level will rise, but real GDP will not change. D. Both the price level and real GDP will not change.