Exhibit 6-2 Refer to Exhibit 6-2. How many persons are not participating in the labor force in year 1?
a. 25 million
b. 50 million
c. 75 million
d. 175 million
e. 200 million
Answer: b. 50 million
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One reason why most economists forecast that the effects of NAFTA on the U.S. economy would be small is because
A) NAFTA does not bring down tariffs far enough. B) the Mexican economy is small relative to the U.S. economy. C) NAFTA trade opening provisions only cover a handful of sectors. D) Mexico was not expected to live up to its obligations under the agreement. E) the United States was not expected to live up to its obligations under the agreement.
The marginal revenue product of labor declines as the number of workers increases because
A) firms hire the most efficient workers first and the least efficient workers last. B) firms must lower prices for the final product when they want to sell more units. C) of the law of diminishing marginal product. D) of diseconomies of scale.
Considered a fundamental pricing metric in commercial real estate markets, the ratio of a property's annual net income to its market value is more commonly referred to as a(n):
A. Appreciation rate B. Capitalization rate C. Discount rate D. Internal rate of return
If one were to consider a university as a business, the computers in the computer labs would be regarded by economists as
a. technology flows. b. mechanization flows. c. part of the university's stock of capital. d. a flow of services from the university's stock of capital.