Describe how delays can prevent economic policy from being successful.
What will be an ideal response?
There is a period of time between when an economic problem emerges and when it can be recognized. Once it is recognized, it takes time to design a policy response and time for the policy to be implemented. By the time the policy has an impact on the economy, the economic situation may have changed, and the action may propel the economy in the wrong direction.
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At the Punjab Bakery, two workers can decorate 14 cakes in an hour and three workers can decorate 18 cakes in an hour. The marginal product of the third worker is
A) 18 cakes, and the average product for three workers is 6 cakes. B) 9 cakes and is equal to the average product. C) 4 cakes, and the average product for three workers is 6 cakes. D) 32 cakes, and the average product for three workers is 9 cakes. E) 6 cakes, and the average product for three workers is also 6 cakes.
A minimum wage is the:
A. lowest wage that a firm is legally allowed to pay its workers. B. highest wage that a firm is legally obligated to pay its non-skilled labor. C. wage every high school dropout will earn if they are employed. D. prevailing wage for low-income workers in a nation.
When per capita real GDP is increasing, real output is growing
a. more rapidly than prices. b. more rapidly than population. c. less rapidly than prices. d. less rapidly than population.
If a bank lends funds in the form of cash, then:
a. M2 stays the same, but M1 rises. b. M1 and M2 fall. c. M1 and M2 do not change. d. M2 rises, and M1 falls. e. M1 and M2 rise.