Refer to Scenario 15.2. If the interest rate were 20%, Furry Software should
A) retool the offices.
B) rewire the network.
C) move to Southern California.
D) be indifferent between retooling and rewiring.
E) be indifferent between retooling and moving.
B
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Why does the aggregate demand (AD) curve slope downward? What could cause the AD curve to shift to the right? What impact would a rightward shift of the AD curve have on the economy?
If total output is $1,000 and total labor-hours are 20, labor productivity is
A. $20. B. $50. C. $2,000. D. $20,000.
To say that a given welfare program is means-tested implies that:
A. in order to qualify, one must have the means. B. the size of the payment reflects the mean value of consumption based on family size. C. the more income one earns, the smaller the size of the benefit. D. in order to qualify, one must show that one means to find a job.
Suppose that a union successfully negotiated a 10 percent wage increase and the quantity of labor demanded increased by 10 percent. We can conclude that:
A. the labor demand curve must have independently shifted to the right. B. labor demand is highly elastic. C. the coefficient of labor demand elasticity is less than 1. D. labor demand is unit-elastic.