Refer to Figure 5.1. All else equal, an increase in total factor productivity will cause a
A) shift from PF1 to PF2.
B) shift from PF2 to PF1.
C) movement up and to the right along PF1.
D) movement down and to the left along PF2.
A
You might also like to view...
If the economy's real GDP doubles in 18 years, we can
A. conclude that its average annual rate of growth is 12%. B. conclude that its average annual rate of growth is 4%. C. not say anything about the average annual rate of growth. D. conclude that its average annual rate of growth is 8%.
Refer to Figure 4-2. What area represents producer surplus at a price of P1?
A) A + C B) A + C + E C) C D) C + E
Answer the following statement(s) true (T) or false (F)
1. Increased taste for European goods in the United States leads to decreased demand for euros. 2. Any change in the average income of U.S. consumers will also change the equilibrium exchange rate, ceteris paribus. 3. When the dollar depreciates, this means that a dollar can buy more units of foreign currency than before. 4. If Europe experiences a higher inflation rate than does the United States, European products become less expensive to U.S. consumers. 5. Governments were unable to agree on an alternative fixed-rate approach when the Bretton Woods system collapsed.
To maximize profits, a firm should expand production as long as it is making profits.
Answer the following statement true (T) or false (F)