When a production function is graphed with Real GDP on the vertical axis and labor on the horizontal axis, a rise in labor ________________________, and a rise in the technology coefficient __________________
A) shifts the production function upward; also shifts the production function upward
B) moves us up along a given production function; shifts the production function upward
C) shifts the production function downward; shifts the production function upward
D) shifts the production function upward; moves us up along a given production function
B
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When real Gross Domestic Product (GDP) falls, which of the following will automatically occur?
A) an increase in income tax revenues B) a decrease in all tax rates C) a decrease in unemployment compensation expenditures D) a decrease in income tax revenues
Within the circular flow model, economists define households as
A) married or engaged couples. B) families living in their own houses. C) individuals or groups living together. D) individuals or groups within the same legally defined family. E) families with at least 2 children.
Vertical relationships can increase profits through
a. preventing firms from evading regulation b. creating a double-markup problem c. making the incentives of manufacturers and retailers unaligned d. facilitating price discrimination
The aggregate supply curve slopes upward because firms
a. seek to maximize profits and output. b. normally can purchase inputs at fixed prices. c. employ technology, which is always fixed. d. purchase inputs whose prices rise as output rises.