A reduction in the demand for labor will cause
A. wages to increase and employment to decrease.
B. wages to decrease and employment to increase.
C. wages to increase and employment to increase.
D. wages to decrease and employment to decrease.
Answer: D
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Copper falls into which factor of production category?
A) land B) labor C) capital D) entrepreneurship
When comparing the velocity of M2 (V2), with the velocity of M1 (V1), the evidence suggests that V2 has been __________ and V1 has been __________ over time
A) relatively predictable; relatively predictable B) relatively predictable; relatively unpredictable C) relatively unpredictable; relatively predictable D) relatively unpredictable; relatively unpredictable
An increase in the real interest rate occurs when ________
A) monetary policy responds automatically to an increase in inflation B) expected inflation increases, relative to the nominal interest rate C) an increase in autonomous spending causes an increase in equilibrium output D) all of the above E) none of the above
The marginal product of a variable input is
A. the second derivative of the total product function. B. zero at the point of diminishing returns. C. the change in the total product that occurs in response to a unit change in the variable input. D. the change in the average product that occurs when the variable input is increased one unit.