At a perfectly competitive firm, all of the following is true of the MRP curve EXCEPT
A. the MRP curve shifts rightward when the product price rises.
B. the MRP curve shifts leftward when the demand for the final product falls.
C. the MRP curve shifts leftward when labor productivity falls.
D. the MRP curve is the derived supply of labor.
Answer: D
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Consider gardening books. What will happen to the market for these books as gardening becomes more popular and simultaneously printing costs increase?
A) The price of gardening books definitely increases. B) The quantity of gardening books definitely increases. C) The price of gardening books might increase or decrease. D) The quantity of gardening books definitely stays the same.
If tastes are identical between countries, then comparative advantage is determined by
A) supply conditions only. B) demand conditions only. C) supply and demand conditions. D) Can't tell without more information.
Which of the following is a false statement about education in the HPAE?
A) An emphasis on state funding of advanced degree programs, such as engineering and computer science, increased manufacturing production significantly. B) Literacy rates rose dramatically in the HPAE and laid a foundation for a skilled labor force. C) As the average educational level rose, workers could take on more technological, sophisticated production, pushing new investment into product lines. D) Spending was focused on the primary and secondary level, where it has the greatest social impact.
With downward-sloping monetary policy and IS curves,the aggregate demand curve is
A) downward sloping. B) flat. C) vertical. D) upward sloping.