A decrease in the number of workers hired by a firm could result from
A) an increase in the marginal product of labor.
B) an increase in the marginal revenue product of labor.
C) an increase in the real wage.
D) a decrease in the real wage.
C
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Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and current international transactionsin the context of the Three-Sector-Model?
a. The GDP Price Index rises, and current international transactionsbecomes more negative (or less positive). b. The GDP Price Index and current international transactionsremain the same. c. The GDP Price Index falls, and current international transactionsremains the same. d. The GDP Price Index falls, and current international transactionsrises. e. There is not enough information to determine what happens to these two macroeconomic variables.
A bank has $1000 in deposits and maintains a 12 percent reserve ratio. Its reserves are $_____
Fill in the blank(s) with correct word
Suppose the market demand for good X is given by QXd = 20 - 2PX. If the equilibrium price of X is $5 per unit, then the total value a consumer receives from consuming the equilibrium quantity is
A. $25. B. $100. C. $50. D. $75.
What is a production possibilities frontier? What do points along the frontier represent? What do points inside and outside the frontier represent?
Answer: A production possibilities frontier is a curve showing the maximum attainable combinations of two products that may be produced with available resources and current technology. Points along a production possibilities frontier are attainable with the resources available and are efficient. Points inside the frontier are attainable but inefficient. Points outside the frontier are unattainable. a. The PPF is linear to reflect the fact that resources are equally suited to both tasks. b. Opportunity cost is defined as the highest-valued alternative that must be forgone by taking an action. c. In the PPF graph in part (a), suppose the country is currently producing at point X and wishes to move to point Y so that it can produce more beer. The only way it can obtain more beer is to give up some amount of pretzels.