If a technological advance reduces the amount of variable resources needed to produce any level of output, then the:
A. AVC curve will shift upward.
B. MC curve will shift downward.
C. ATC curve will shift upward.
D. AFC curve will shift downward.
Answer: B
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The burden of a luxury tax most likely falls more heavily on sellers because demand is more elastic and supply is more inelastic
a. True b. False Indicate whether the statement is true or false
Your willingness to pay more to fly to your vacation spot on the coast rather than incur the cost of driving there indicates that:
a. you place a high value on your time. b. you place a low value on your time. c. you believe time has zero value. d. you believe time is valued at your wage level.
The growth of the labor force and the growth of labor productivity help determine the rate of GDP growth.
Answer the following statement true (T) or false (F)
Expansionary fiscal policy can be used to reduce cyclical unemployment by
A. increasing aggregate demand so as to raise real Gross Domestic Product (GDP). B. increasing long-run aggregate supply so as to raise real Gross Domestic Product (GDP). C. eliminating inefficiencies from labor markets. D. raising nominal wages so as to encourage workers to work more hours.