Over the last 50 years, has the ratio of household production to gross domestic product in the United States increased or decreased? Consider the effect of the increased number of women working outside the home, and the effect of advances in technology
in household production such as microwaves, coffee makers, power tools, etc.
What will be an ideal response?
"Household production" refers to goods and services people produce for themselves. It is not clear whether the ratio of household production to gross domestic product has increased or decreased. More women working outside the home has decreased the ratio of household production to GDP, but the technological advances at home have allowed people to produce more household production in less time.
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Fixed exchange rates are often maintained in all of the following ways except ________.
A. controls on imports and exports, such as tariffs and quotas B. open speculation by individual traders in foreign currency markets C. domestic macroeconomic adjustments using monetary and fiscal policies D. international monetary reserves held by central banks
If real salaries increase but nominal salaries do not, this means that
A) the purchasing power of money has decreased. B) prices have risen. C) prices have not changed. D) prices have fallen.
Which of the following labor market statistics best indicates the amount of labor that is available to the economy from a given working-age population?
A) labor force participation rate B) unemployment rate C) discouraged-worker ratio D) the ratio of minimum wage to inflation
A rise in interest rates leads to:
a. an increase in the PDV of profits from owning a machine. b. a decrease in the PDV of profits from owning a machine. c. offsetting the effects on the costs and benefits of owning a machine. d. no effect on either the costs or benefits of owning a machine.