What shape is the production possibilities curve usually expected to exhibit?
a. Upward-sloping.
b. Bowed out.
c. Bowed in.
d. Straight line.
e. U-shaped.
b
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An increase in the real wage rate ________ the quantity of labor demanded and ________ the quantity of labor supplied
A) decreases; increases B) increases; increases C) decreases; decreases D) increases; decreases E) does not change; does not change
In 2012, Canadian farmers did not suffer from drought conditions that affected the United States, but they did enjoy the higher corn prices. Canadian farmers reacted to the higher price by planting more corn
Suppose that the price of corn increased by 30 percent and the Canadian farmers increased the quantity of corn they supply by 20 percent. The supply of corn is A) perfectly inelastic. B) unit elastic. C) elastic. D) inelastic.
If net investment spending in a nation is zero, we can conclude that:
a. gross investment exceeds the capital consumption allowance. b. the capital consumption allowance exceeds gross investment. c. imports equal exports. d. gross investment equals the capital consumption allowance. e. no investment goods were produced in the economy.
If the government uses stabilization policies to reduce inflation, the economy may have to suffer
a. higher rates of real GDP growth. b. higher rates of unemployment. c. lower rates of unemployment. d. higher rates of price level growth.