In a market-oriented economy, the choice between the production of consumer goods and physical capital is the result of decisions made by:
a. the government
b. firms and the government.
c. households and firms.
d. the labor force.
c
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All of the following are considered process innovation EXCEPT
A) neutral technical progress. B) labor saving technical progress. C) organizational innovation. D) nonneutral technical progress.
This year, Shirts Inc purchased $1,000 worth of silk from the Silky Silkworm Company, $100 worth of buttons from Barney's Buttons, and $200 worth of thread from Tracy's Thread Company. Shirts Inc sold the shirts they produced for $2,000 . As a result of these transactions, how much did Shirts Inc contribute to GDP this year?
a. $700 b. $1,300 c. $2,000 d. $2,700 e. $3,300
Suppose the equilibrium price of a tube of toothpaste is $2, and the government imposes a price floor of $3 per tube. As a result of the price floor, the
a. demand curve for toothpaste shifts to the left. b. supply curve for toothpaste shifts to the right. c. quantity demanded of toothpaste decreases, and the quantity of toothpaste that firms want to supply increases. d. quantity supplied of toothpaste stays the same.
According to John Maynard Keynes people hold money for each of these reasons except the _____ motive.
A. precautionary B. price C. speculative D. transactions