Identify the direction of the change during a recession in each of the following: consumption expenditures, investment expenditures, and unemployment
Consumption expenditures decrease, investment expenditures decrease, and unemployment increases.
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To determine the number of workers hired, the firm
a. looks to where MRP = the wage rate. b. looks to the point of maximum difference between MRP and the wage rate. c. looks to the point of maximum MRP. d. looks to the point of MRP = 0.
Other things the same, if a country raises its saving rate, when is growth of real GDP per person higher?
a. as the economy moves toward the long run and in the long run. b. as the economy moves toward the long run, but not in the long run. c. in the long run, but not as the economy moves toward the long run. d. neither as the economy moves toward the long run, nor in the long run.
Give an example of an oligopolistic market. Explain why it is oligopolist.
What will be an ideal response?
If a good has a negative income elasticity of demand, this indicates that the good is
A) normal. B) a substitute with another good. C) inferior. D) a complement with another good.