Refer to the graph. The combination of 4 units of drill presses and 2 units of bread is:
A. attainable, but represents an economy not achieving full employment or full production.
B. attainable and efficient.
C. unattainable given available resources and technology.
D. attainable if the economy becomes more efficient in allocating resources.
Answer: A
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At the end of an expansion, wages of workers are usually rising faster than prices
Indicate whether the statement is true or false
You try to explain the number of IBM shares traded in the stock market per day in 2005. As an independent variable you choose the closing price of the share. This is an example of
A) simultaneous causality. B) invalid inference due to a small sample size. C) sample selection bias since you should analyze more than one stock. D) a situation where homoskedasticity-only standard errors should be used since you only analyze one company.
According to the Heckscher-Ohlin model:
a. a relatively labor scarce country produces labor intensive goods. b. the labor productivity varies across different countries. c. the technological advancement varies across countries. d. the taste and preference patterns of the consumers are not similar across the countries. e. a capital abundant country exports sophisticated, manufactured products.
For a given technology, a higher capital stock will decrease labor productivity
a. True b. False Indicate whether the statement is true or false