By driving up interest rates, an increase in investment spending causes
a. a voluntary decrease in consumption
b. a voluntary increase in consumption
c. an involuntary decrease in consumption
d. an involuntary increase in consumption
e. government spending to be crowded out
A
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If men, on average, earn 20 percent more than women in a particular occupation,
a. this is clear evidence of discrimination b. some of this differential could be due to differences in human capital c. most but not all of the differential is due to discrimination d. comparable worth laws must not be in effect e. men must have higher skills levels than women
The production function for good X exhibited in the table below is for the:Production Function for Good XL*KQMPK=(?Q/?K)APK=(Q/K)LaborCapitalOutputMarginal Product of CapitalAverage Product of Capital900----910575.75.7092032426.716.2093065733.3B9401,07241.526.809501,52445.230.489601,97645.232.939702,39141.534.169802,72433.334.059902,991A33.2391003,0485.730.4891103,016-3.227.4291202,945-7.124.54
A. short run, since L is the fixed input. B. long run, since K is the variable input. C. short run, since L is the variable input. D. long run, since K is the fixed input.
Exhibit 20-6 Money, investment and product markets
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In Exhibit 20-6, an increase in the money supply from MS1 to MS2 causes:
A. interest rates to fall from i1 to i2 and the quantity demanded of investment to decrease from I2 to I1. B. interest rates to fall from i1 to i2 and aggregate demand to shift from AD2 to AD1. C. interest rates to fall from i1 to i2 and the quantity demanded of investment to increase from I1 to I2. D. interest rates to rise from i2 to i1 and the quantity demanded of investment to remain the same.
By drawing a demand curve with ________ on the vertical axis and ________ on the horizontal axis, economists assume that the most important determinant of the demand for a good is the ________ of the good
A) quantity; price; quantity B) price; quantity; quantity C) price; quantity; price D) quantity; price; price