What is the labor theory of value?
What will be an ideal response?
The labor theory of value is the theory that the value of a commodity depends only on the amount of labor required to produce it.
You might also like to view...
Refer to Figure 13-2. Ceteris paribus, an increase in the price level would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.
Farm prices fell sharply in 1919–21 . Then, until 1929, the farm "terms of trade" (the movement of farm prices relative to the movement of non-farm prices)
(a) collapsed by more than half. (b) remained essentially unchanged. (c) actually rose. (d) collapsed, but only slightly.
If the short-run equilibrium output of the United States exceeds the potential output, the Fed:
a. employs an active monetary policy to close a recessionary gap. b. employs an active monetary policy to close an expansionary gap. c. relies on a passive approach to close a recessionary gap. d. relies on a passive approach to close an expansionary gap e. employs an expansionary fiscal policy.
Unemployment insurance payments act as automatic stabilizers by
a. allowing for more consumer spending during prosperity b. evening out workers' income over the business cycle c. creating higher budgets during a recession d. allowing for less consumer spending during a recession e. evening out differences between the Phillips and Laffer curves