Firms in an economy with high labor costs have an incentive to use more ________ techniques.
A. capital-intensive
B. labor-intensive
C. labor-dependent
D. capital-saving
Answer: A
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Which of the following is true of scarcity?
a. It applies to raw materials; manufactured goods are not scarce. b. It affects all countries except the United States and Canada. c. It affects only poor nations. d. It is a basic problem of economics that affects all nations.
More than 70 percent of national income can be attributed to:
a. compensation of employees. b. rental income. c. corporate profit. d. net interest. e. proprietors' income.
Recall the Application about how the collapse of the housing boom and the worldwide recession of 2007 led to problems for some countries in the Euro-zone to answer the following question(s). When the euro was launched in 1999, the vision of its founders was to use the monetary union to further unify Europe economically and politically. They envisioned a large economic market, comparable to the United States with integrated goods and financial markets. They believed that by moving to a single currency with agreements on a number of fiscal rules that they could achieve economic stability and growth.Recall the Application. The European nations that adopted the euro as a common currency no longer have their own central banks and are therefore no longer able to conduct their own independent:
A. fiscal policy. B. monetary policy. C. international investment. D. trade policy.
More farmers have recently entered the wheat industry. In addition there has been a technological advancement in the fertilizer industry providing wheat farmers with a cheaper and a more effective fertilizer. In the market for wheat, the effects these changes will have on the equilibrium price and quantity are
A. price will increase, and quantity will decrease. B. price will increase, and the effect on quantity is indeterminate. C. price will decrease, and quantity will increase. D. price will decrease, and the effect on quantity is indeterminate.