Improvements in information technology over the past decade have enhanced labor productivity. What has been a likely result of this change?
A) Unemployment has increased.
B) Entrepreneurs no longer have an incentive to invest in information technology.
C) Capital productivity has declined.
D) The rate of economic growth has increased.
D
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The long-run Phillips curve:
a. is downward sloping. b. is upward sloping. c. shows there is no tradeoff between unemployment and inflation. d. is horizontal at the natural rate of inflation.
The limits of the terms of trade are determined by the:
a. distribution costs in each country. b. stock of foreign exchange in each country. c. average total costs of producing the commodities in each country. d. opportunity costs in each country. e. currency exchange rate between the trading partners.
When demand and income move in the same direction, a good is said to be: a. a normal good
b. an inferior good. c. a complementary good. d. a substitute good.
Holding all other prices and money income constant, if the price of food rises, then the consumer will adjust her expenditures and
A) reach an optimum on a higher indifference curve. B) reach an optimum on a lower indifference curve. C) reach an optimum on the same indifference curve. D) her level of satisfaction may go up or down.