If marginal cost is above average variable cost, then
A) average variable cost is increasing.
B) marginal cost must be decreasing.
C) average variable cost is constant.
D) average variable cost is decreasing.
A) average variable cost is increasing.
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A trade-off between unemployment and inflation is reflected in the
A) economic stability. B) nonaccelerating inflation rate of unemployment (NAIRU). C) natural rate of unemployment. D) Phillips Curve.
The intertemporal substitution effect refers to substitution of
A) goods for services. B) goods and services for less expensive goods and services. C) goods and services today for goods and services in the future. D) goods and services produced domestically for goods and services produced in another country.
A large employer gives each new hire an aptitude test, which is scored from 1 to 20. Let T be a worker's score on the test. The firm then pays a new worker a wage of w = 0.6T + 0.4G where G is the average test score for the worker's gender: 16 for women; 12 for men. How much more is a woman paid than a man when both scored a 10 on the test?
A. $0.80 B. $0.40 C. $0.20 D. $1.60 E. $3.20
In contrast to development, growth refers to an increase in:
A. output with no change in productive capacity. B. output brought about by an increase in inputs. C. output brought about by a change in the production function. D. productive capacity with no change in output.