A temporary beneficial productivity shock would
A) shift the labor supply curve down and to the right.
B) increase the level of employment.
C) increase future income.
D) increase the expected future marginal product of capital.
B
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The above figure shows Katie's consumption possibilities. The relative price of a restaurant meal is
A) 1 movie ticket. B) 0.25 movie tickets. C) 4 movie tickets. D) 2 movie tickets.
In the long run, a competitive firm has a marginal product of labor, MPL = L-1. The output price is $20 per unit and the wage is $7.25 per hour. The long-run labor demand curve for the firm is
A) 20L-0.05. B) 7.25L-0.05. C) 20L-1. D) 7.25L-1.
Global warming, which causes unfavorable climatic changes due to the burning of fossil fuels, would be an example of a(n): a. positive externality
b. negative externality. c. internalized externality. d. Coase externality.
A balanced budget amendment to the Constitution, proposed several times in the 1990s
A. Would prevent recessions. B. Would require the federal budget to be balanced every year. C. Would automatically produce surpluses during recessions and deficits during inflations. D. Would require the federal budget to be balanced over the course of the business cycle.