The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending.
B. recessionary gaps.
C. expansionary gaps.
D. unemployment.
Answer: B
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Refer to Table 21.3 below:Table 21.3Units of LaborUnits of OutputMPP00 1 30266 3 304116 What is the unit labor cost in Table 21.3 for the second unit of labor if the MPP represents daily output and the wage rate is $72 per day?
A. $36.00 per unit of output. B. $72.00 per unit of output. C. $2.00 per unit of output. D. $0.50 per unit of output.
Which of the reasons given for tariff protection make consumers better off by generating lower prices?
A) infant industry argument B) protecting U.S. jobs argument C) anti-dumping argument D) None provides lower prices for domestic consumers.
Suppose that an economy's labor productivity and total worker-hours each grew by 4 percent between year 1 and year 2. We could conclude that this economy's:
A. real GDP also increased by 4 percent. B. real GDP remained constant. C. production possibilities curve shifted outward. D. capital stock increased by 4 percent.
Economists refer to things that have already been produced that are in turn used to produce other goods and services as
A. entrepreneurship. B. capital. C. land. D. labor.