The change in the quantity of goods and services demanded in the U.S. is based on the logic that as the price level rises,
a. real wealth falls, interest rates rise, and net exports fall.
b. real wealth falls, interest rates rise, and net exports rise.
c. real wealth rises, interest rates fall, and net exports fall.
d. real wealth rises, interest rates fall, and net exports rise.
A
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How is the marginal product of labor calculated? As the firm increases its output, what pattern will we observe in the marginal product of labor and why does it occur?
What will be an ideal response?
You withdraw some of your savings to invest in a new business venture. Which of the following statements is true?
a. The return you will earn from this new investment is your opportunity cost. b. The interest rate you would have earned in the bank is higher than the return from this investment. c. The return you expect to earn from this new investment must exceed your opportunity cost. d. The return you expect to earn from this new investment must equal your opportunity cost.
As the Fed responded to the financial crisis that followed the collapse of the housing market, certain banks were deemed too:
A. large to fail, as their failure would carry the risk of causing a domino effect in the highly integrated financial system. B. large to stay afloat, as they would be too costly to save. C. small to fail, as they were easy to save. D. large to fail, and were consequently purchased by the government.
Efficiency-wage theory suggests that paying
a. low wages might be profitable because they raise the efficiency of a firm's workers. b. low wages might be profitable because they lower the efficiency of a firm's workers. c. high wages might be profitable because they raise the efficiency of a firm's workers. d. high wages might be profitable because they lower the efficiency of a firm's workers.