Assume that the labor market is perfectly competitive. An increase in the productivity of labor
A) causes the marginal factor cost of labor to decrease.
B) generates a lower wage rate.
C) causes an increase in the demand for labor.
D) causes a reduction in the demand for labor since each worker is now more productive.
C
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Which of the following statements is correct?
A. The federal funds rate is derived based on the prime rate. B. The prime rate involves longer, more risky loans than the federal funds rate. C. The federal funds rate is the rate banks charge their most creditworthy customers. D. The discount rate is the rate banks charge one another on overnight loans.
On a given day, the exchange rate for one U.S. dollar is 1.2 Canadian dollars and 0.5 British pounds. Exactly six months later, the exchange rate for one U.S. dollar is 1.1 Canadian dollars and 0.7 British pound. From the information given, we can say that:
a. the dollar has appreciated relative to Canadian dollars and depreciated relative to British pounds. b. the dollar has appreciated relative to British pounds and depreciated relative to Canadian dollars. c. the dollar has appreciated relative to both British pounds and Canadian dollars. d. the dollar has depreciated relative to both British pounds and Canadian dollars. e. there is no change in the relative value of the U.S. dollar.
The mid-point method of calculating price elasticity of demand:
A. measures the percentage changes relative to a point midway between two points on a demand curve. B. measures the percentage change relative to a point midway between demand and supply. C. measures the absolute change relative to a point midway between two points on a demand curve. D. None of these is true.
If a nation that imports a good imposes a tariff, it will increase
a. the domestic quantity supplied. b. the efficiency of the equilibrium. c. the quantity imported from abroad. d. the domestic quantity demanded.