A decrease in nominal incomes causes a leftward shift in the short-run aggregate supply curve (SRAS)
a. True
b. False
Indicate whether the statement is true or false
False
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The marginal product of labor is the change in
A) total cost from employing one more worker. B) total revenue from employing one more worker. C) average product from employing one more worker. D) total output from employing one more worker. E) total output divided by the change in cost from employing one more worker.
Hermione and Ron are at a sweet shop in London. Hermione looks at the prices of ice cream and chocolate bars and says to Ron: "I can tell you what your marginal rate of substitution between ice cream and chocolate bars is at your best affordable
point." "No, you can't," says Ron. "You don't know my preferences and how much money I have." "I don't need to know all this because I know the prices," Hermione replies. Is she right? Explain.
Refer to Figure 2-10. If the economy is currently producing at point C, what is the opportunity cost of moving to point B?
A) 46 thousand forks B) 26 thousand forks C) 40 thousand spoons D) 20 thousand spoons
Lessons about the nature of economic processes will likely emerge from the analysis of transitional economies
a. True b. False