Assume the price of capital falls relative to the price of labor and, as a result, the demand for labor increases. Therefore
A. the output effect is greater than the substitution effect.
B. capital is very highly substitutable for labor.
C. the substitution effect is greater than the output effect.
D. the income effect is greater than the output effect.
Answer: A
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The real interest rate bringing the supply of saving equal to the demand for saving is an example of the:
A. cost-benefit principle B. equilibrium principle. C. scarcity principle. D. principle of increasing opportunity cost.
Refer to Table 19-20. Given the following information, calculate the rate of increase in the price level from 2015 to 2016
A) 8.6% B) 7.9% C) -7.9% D) -8.6%
The conceptual measure of the satisfaction a person obtains by consuming all the units of a good or service during a given time period is:
a. total product. b. total revenue. c. total utility. d. total product.
The level of real GDP is a good measure of economic prosperity, and the growth of real GDP is a good measure of __________
Fill in the blank(s) with correct word