Which one of the following will cause a movement up along an economy's saving schedule?
A. An increase in household borrowing.
B. An increase in disposable income.
C. An increase in stock prices.
D. An increase in interest rates.
B. An increase in disposable income.
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One plausible explanation of the U.S. productivity slowdown starting in 1973 is that it was a result of the increase in the relative price of energy. This explanation would require that, in light of higher energy costs, the
A) capital stock is overestimated. B) capital stock is underestimated. C) labor force is overestimated. D) labor force is underestimated.
If a quota is imposed on the import of a good that has a lower price in the domestic market than in the world market, a surplus occurs in the market for the good
a. True b. False Indicate whether the statement is true or false
Low-skill workers earn a lower wage than more experienced, higher skilled workers because the
a. low-skill workers were never given the opportunity to invest in human capital. b. low-skill workers lack the intelligence necessary to do any other form of work. c. low-skill workers are too lazy to search for other employment opportunities. d. supply of low-skill workers is large relative to the demand for workers in this skill category.
The experience of the 1970s and 1980s suggests that the cost of engaging in the process of disinflation is that
A. exports must increase. B. deflation must occur. C. nominal interest rates will be expected to increase. D. unemployment will most likely increase.