Would the housing industry be characterized as an increasing, decreasing or a constant-cost industry? Explain your position
What will be an ideal response?
As production in the industry expands there will be a greater demand for labor and raw materials. This will eventually bid up wage rates and prices for construction materials. Therefore, it would be considered as an increasing cost industry.
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A hypothetical open economy has a marginal propensity to import (MPI) equal to 0.2 and a marginal propensity to consume equal to 0.7. Assume that the economy is initially in equilibrium. Refer to Scenario 10.2. What is the marginal propensity to save of this economy?
a. 0.2 b. 0.3 c. 0.7 d. 0.9 e. 0.6
U.S. labor productivity slowed during the 1970s because of
i. increasing government taxes and regulations on production. ii. the necessity to cope with energy price increases. iii. inflation, which shortened the horizon over which businesses made their borrowing plans. A) i only B) ii only C) iii only D) Both i and ii E) i, ii, and iii
Voluntary export restraints and quotas are essentially identical in their welfare effects
Indicate whether the statement is true or false
How did international policy coordination contribute to the avoidance of an economic depression in 2008 - 2010?
What will be an ideal response?