In the short run, a decrease in government expenditure ________ real GDP and ________ the price level
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
D
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The slope of the output per worker function is equal to the
A) marginal product of capital. B) marginal product of labor. C) savings rate. D) growth rate of the population.
Which of the following could explain a decrease in the demand for labor in a particular job?
a. additional training that increases the productivity of each unit of labor in this market b. an increase in the amount of risk associated with this job c. a decrease in the amount of risk associated with this job d. an improvement in the working conditions associated with this job e. a decrease in the productivity of each unit of labor in this market
Who is considered to be the most powerful person in the economic world by many observers?
a. Federal Reserve Chair b. EU Central Bank President c. Director-General of the WTO d. World Bank President
Suppose country Alpha must give up 2 units of clothing for each unit of food produced, while country Omega must give up 1/2 of a unit of clothing for each unit of food produced. If specialization and trade were to occur between these two fictitious countries, which of the following would be consistent with comparative advantage and mutually advantageous trade?
a. Omega will sell food to Alpha at a price of 1 unit of clothing for 1/2 unit of food. b. Omega will sell food to Alpha at a price of 1 unit of clothing for each unit of food. c. Alpha will sell food to Omega at a price of 2 units of clothing for each unit of food. d. Alpha will sell food to Omega at a price of 1 unit of clothing for each unit of food.