Which of the following causes the aggregate production function to shift up?
A) An increase in capital stock B) A decrease in the productivity of workers
C) An improvement in technology D) An increase in the total efficiency units of labor
C
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Suppose the price of a good rises. When will the resulting substitution effect reduce the quantity demanded of the good?
a. Always. b. Whenever the good is a non-Giffen good. c. Only when the good is normal. d. Only when the good is inferior.
Refer to Table 17.1. The unemployment rate for this simple economy is
A) 6%. B) 10%. C) 20%. D) 25%.
In which of the following situations would consideration of the minimum efficient scale of operation suggest that the market should be served by a single firm to minimize production costs?
A) When the LRAC curve slopes downward over the relevant range of output. B) When the LRAC curve hits its minimum point at a relatively low level of output and then increases and the demand for output is quite large. C) When the LRAC curve hits its minimum point at a relatively low level of output but then remains constant as the scale of operation is increased and the demand for output is quite large. D) When the LRAC curve initially increases and then decreases beyond some point.
Autocorrelation of the error terms
A) makes it impossible to calculate homoskedasticity only standard errors. B) causes OLS to be no longer consistent. C) causes the usual OLS standard errors to be inconsistent. D) results in OLS being biased.