Suppose the United States eliminates high tariffs on German bicycles. As a result, we would expect:
A. the price of German bicycles to increase in the United States.
B. employment to decrease in the German bicycle industry.
C. employment to decrease in the U.S. bicycle industry.
D. profits to rise in the U.S. bicycle industry.
C. employment to decrease in the U.S. bicycle industry.
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To determine the marginal physical product of labor, you must
a. hold total output constant and calculate how much revenue an additional worker generates b. hold capital constant and calculate how much revenue an additional worker generates hold capital constant c. hold all other factors of production constant and calculate how much output an additional worker produces d. hold labor constant and calculate how much output an additional worker produces e. hold labor constant and calculate how much revenue an additional worker generates
Which of the following will always be true when an economy is in long-run equilibrium?
a. The level of prices will be constant (that is, inflation will be zero). b. Actual output will exceed the potential output. c. The actual rate of unemployment will be less than the natural rate of unemployment. d. The output of the economy will correspond with the full-employment output.
If the government were to intervene and set the rent for apartments in New York City below the market rent, then we would expect, relative to the market outcome,
a. an increase in the number of people wanting to live in apartments in New York City. b. a decrease in the number of people wanting to live in apartments in New York City. c. an increase in the number of apartments available for rent in New York City. d. None of the above is correct.
Which of the following is most likely to be TRUE?
A) Income elasticity of demand for fur coats exceeds that of oatmeal. B) Income elasticity of demand for oatmeal exceeds that of fur coats. C) Income elasticity of demand for fur coats equals that of oatmeal. D) It is not possible to make any prediction about relative income elasticities.