Three workers run a house painting business and always work the same number of hours together. The paint they use requires applying two coats. Each worker paints 200 square feet per hour using a roller or 80 square feet per hour using a brush. If a technological advance provides a paint that only requires one coat, their average labor productivity per hour as a team:
A. increases.
B. remains the same.
C. may either increase or decrease.
D. decreases.
Answer: A
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Other things constant, the price elasticity of demand for a product will be smaller (more inelastic) if:
a. people spend a large share of their income on the product. b. people spend an insignificant share of their income on the product. c. the population in the market area is large. d. there are many good substitutes for the product.
Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and real GDP in the context of the Three-Sector-Model? a. The quantity of real loanable funds per time period falls and real
GDP falls. b. The quantity of real loanable funds per time period rises and real GDP rises. c. The quantity of real loanable funds per time period rises and real GDP remains the same. d. The quantity of real loanable funds per time period and real GDP remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
What do automatic stabilizers attempt to stabilize?
A. imports B. exports C. long-run aggregate supply D. aggregate demand
The demand for food will likely be price ________ while the demand for Brand X Burger will likely be price ________.
A. inelastic; inelastic B. elastic; elastic C. inelastic; elastic D. elastic; inelastic