Refer to the Article Summary. Labor productivity in the UK was well below the productivity in five of the other G7 nations, only faring better than Japan.. Labor productivity is important for an economy because an increase in labor productivity
A) will increase output and decrease wages in the long run.
B) will increase the labor force participation rate.
C) will create short-run, but not long-run, economic growth.
D) allows the average consumer to increase consumption.
D
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A proportional income tax is a tax that taxes income at a constant rate
Indicate whether the statement is true or false
Suppose the price of lumber decreases. In the market for new homes, we would expect which of the following to occur?
A) the market clearing price will fall and the equilibrium quantity will rise. B) the market clearing price will rise and the equilibrium quantity will fall. C) both the market clearing price and the equilibrium quantity will fall. D) both the market clearing price and the equilibrium quantity will rise.
Monopoly market structures may lead to lower prices than competitive markets in the presence of
a. price discrimination b. laissez-faire c. contestable markets d. substantial economies of scale e. countervailing power
An increase in the interest rate will
A. increase the demand for money alone. B. change neither the demand nor the supply of money; rather it will only affect the quantity demanded and quantity supplied. C. decrease the demand for money and increase the supply of money. D. increase the demand for money and decrease the supply of money.