When the economy is in a slump, labor productivity tends to fall because firms have
A. too little capital.
B. too little labor.
C. excess labor.
D. excess capital.
Answer: C
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As capital goods depreciate, the growth of labor productivity will increase
a. True b. False Indicate whether the statement is true or false
Tying is always profitable for a monopoly
a. True b. False Indicate whether the statement is true or false
The aggregate supply curve normally
A. slopes downward and to the right due to higher resource prices. B. has a horizontal slope equal to zero. C. is very steep in the lower portion and flatter in the upper portion. D. slopes upward to the right due to short-run fixed costs of production.
Someone notices that sunspot activity is high just prior to recessions and concludes that sunspots cause recessions. This person has:
A. confused association and causation. B. misunderstood the Ceteris paribus assumption. C. used normative economics to answer a positive question. D. built an untestable model.