The Fed can surely reduce the rightward shift of the AD curve, but
a. stock and bond prices may fall dramatically
b. inflation may rise sharply
c. inflation would change in an unpredictable fashion
d. recession may result
e. unemployment may fall to below the natural rate
D
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What is the basic criticism that economic theory levels against the movement to base wages on the "comparable worth" of jobs?
A) Markets, not employers, set wage rates for different jobs. B) There are no jobs that are inherently more suitable for women than for men. C) There is no way to compare the satisfactions that different people derive from a job. D) Wage rates determine the worth of workers to an employer by determining the number that will be hired. E) Wage rates will be set by supply and demand and cannot be changed by anything government does.
If a firm’s marginal product of labor is currently 75 units of output, the wage is $15 per unit of labor, and output sells for $0.80 per unit, the firm should
a) shut down production b) hire fewer workers c) maintain its current workforce, but at fewer hours per worker d) keep the current number of employees and hours worked e) hire more labor
If a firm's total costs are $100 when 10 units of output are produced and $103 when 11 units of output are produced, the marginal cost of the 11th unit is
A) $1. B) $3. C) $5. D) $9.36.
Comparing total taxes as a percentage of GDP in the United States to Western European countries, such as the France, Norway, and Sweden,
A. U.S. taxation is smaller. B. U.S. taxation is about the same. C. U.S. taxation is slightly larger. D. U.S. taxation is substantially larger.