The productivity curve shifts upward when
A) technology advances.
B) physical capital increases.
C) hours of labor increase.
D) hours of labor decrease.
E) human capital decreases.
A
You might also like to view...
A currency system in which exchange rates are determined in free markets is called a
A) gold standard. B) flexible exchange rate system. C) fixed exchange rate system. D) all of the above
The owner of a scenic waterfall is trying to decide whether to rent the site to a manufacturing firm as an industrial power source or to rent it to a recreational association, which would turn the site into a park and campground
Which of the following statements is true? A) An increase in the price of fossil fuels will increase the cost of renting it to the recreation association. B) Social welfare is maximized when the owner rents to the higher bidder. C) The cost to the owner of renting to one or the other depends entirely upon the owner's preferences between economic growth and recreational facilities. D) The owner can choose without regard to cost because the site is a free natural resource. E) The owner can choose without regard to cost insofar as the waterfall is privately owned.
The effect of a change in price on the quantity bought when the consumer remains indifferent between the original and the new situation is called the
A) income effect. B) indifference effect. C) substitution effect. D) demand effect.
We cannot predict the effect on the equilibrium quantity, but know that the market clearing price will decrease when
A) supply increases and demand increases. B) supply decreases and demand decreases. C) supply decreases and at the same time demand increases. D) supply increases and at the same time demand decreases.