When a production function is graphed with Real GDP on the vertical axis and labor on the horizontal axis, a rise in capital________________________, and a rise in the technology coefficient __________________
A) shifts the production function upward; also shifts the production function upward
B) shifts the production function downward; shifts the production function upward
C) moves us up along a given production function; shifts the production function upward
D) shifts the production function upward; moves us up along a given production function
A
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Most supermarkets charge the same price for the majority of goods sold. This suggest that
A) the large supermarket chains are price leaders and smaller grocers take these prices as given. B) mark-ups reflect the degree of competition in the supermarket industry. C) supermarkets have colluded to fix prices on most of the goods sold. D) the government regulates prices of most products sold in supermarkets.
If an individual earns $1,500 a month and spends it evenly throughout the month, transaction balances will average
A) $50 per month. B) $750 per month. C) $1500 per month. D) $3000 per month.
When a government has decided on a permanent spending increase, a valid reason to increase borrowing rather than taxes might be to ________
A) to avoid an unnecessary stimulus to aggregate demand B) to shift the burden from domestic taxpayers to foreign bond holders C) to avoid distortions that might reduce long-run aggregate supply D) to avoid an increase in income inequality
Most of the volume of business in the United States is carried on by the
a. sole proprietor form of business b. partnership form of business c. corporate form of business d. government e. mutual fund form of business