What should happen to the equilibrium price and quantity in a market as a result of a quota on imports?
A. Equilibrium price should go up, and equilibrium quantity should go down.
B. Equilibrium price and quantity should both go down.
C. Equilibrium price and quantity should both go up.
D. Equilibrium price should go down, and equilibrium quantity should go up.
Answer: A
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Given the production function Y = A , if an economy's capital per worker k is $27 thousand, and its total factor productivity A is 0.5, then output per worker is (approximately) ________
A) $13,500 B) $40,500 C) $3,000 D) $5,000 E) $1,500
If a firm pays its workers $10 per hour, the marginal product of labor is 5 units per hour, and the price of the firm's product is $15 per unit, what is the price elasticity of demand facing the firm?
A) -1.15 B) -2.15 C) -1.0 D) -3.56
In the traditional Keynesian model, if the government increases spending, then
A) consumption will increase, and so real Gross Domestic Product (GDP) will increase by more than the increase in government spending. B) consumption will decrease, and so real Gross Domestic Product (GDP) will increase by less than the increase in government spending. C) consumption will remain the same, and so real Gross Domestic Product (GDP) will increase by the same amount of the increase in government spending. D) consumption will increase or decrease, and so real Gross Domestic Product (GDP) will increase or decrease depending on the change in consumption.
Each of the following took place in the latter half of the 1990s except
A. a falling rate of inflation. B. a rising stock market. C. an economic boom. D. a rising unemployment rate.