A favorable supply shock would
A. shift the production function down and increase marginal products at every level of employment.
B. shift the production function down and decrease marginal products at every level of employment.
C. shift the production function up and increase marginal products at every level of employment.
D. shift the production function up and decrease marginal products at every level of employment.
Answer: C
You might also like to view...
The philosopher John Rawls argued that if people could make arrangements about how society would be organized before they were born that one of the principles that we would agree upon is that social and economic inequalities are to be arranged so
that they are to be of the greatest benefit to the least-advantaged members of society. What economic strategy sounds akin to this idea? Explain.
The text shows that income elasticity for books is 1.44 . This means that
a. books are income inelastic b. books are price inelastic c. there's a 144 percent increase in book sales when income rises 10 percent d. there's a 44 percent increase in book sales when income rises 10 percent e. there's a 1.44 percent increase in book sales when income rises 1 percent
One of the major drawbacks associated with parity pricing is that it
a. creates underproduction of food goods b. doesn't apply to consumption by cattle and hogs of feed corn c. causes many farmers to go out of business d. stifles the adoption of new technology e. helps the rich farmers more than the poor ones
Generally, there is _____ relationship between the GDP of a country and the number of work-hours in the country
a. an indirect b. a fluctuating c. a constant d. no