A constant marginal rate of substitution between two goods implies that they are
A) perfect complements.
B) perfect substitutes.
C) independent goods.
D) unattainable.
B
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Tesla Motors manufacturers its cars at a plant in Fremont, California
At this plant, Tesla is able to take advantage of the high level of technical training possessed by its American workers, but it also sacrifices the ability to pay lower wages had it chosen to open its plant in a low-wage country such as Mexico, India, or China. In deciding to open the Fremont plant, Tesla A) eroded some of its competitiveness in the luxury electric car market because of its increased cost of production. B) faced a trade-off between higher cost and lower precision. C) faced no trade-offs because employing more technically-skilled workers increased efficiency. D) adopted a negative technological change because it chose high-skilled workers over low-paid workers.
Government transfer payments include all of the following except
a. retirement benefits b. paid vacations c. veteran benefits d. disability payments e. subsidies to farmers
A sudden, unexpected increase in the economy’s prevailing wage level due to a general strike threat would
a) shift the aggregate demand curve out and push equilibrium prices down b) shift the aggregate demand curve in and push equilibrium output down c) shift the short run aggregate supply curve in and push equilibrium prices up d) shift the Phillips Curve in and increase the natural rate of unemployment e) shift the long run aggregate supply curve out and push equilibrium prices down
If real GDP is $17,700 billion (in 2012 dollars) in 2017 Q2 and $18,400 (in 2012 dollars) in 2018 Q2, then the non-annualized quarterly growth rate of real GDP is
A. 1.0%. B. 4.0%. C. 0.4% D. 16.8%.