Choices made by economic decision makers
a. are government decisions only
b. are the primary focus of economics
c. are not important in economic analysis
d. occur infrequently
e. do not involve ordinary citizens
B
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Increases in worker productivity usually reflect
A. growth of labor unions. B. management that pushes workers to work longer and harder. C. elimination of unemployment benefit programs. D. increased education and improved equipment.
Suppose the MPC in the economy in Figure 10.2 equals 0.8 and the shift from AD0 to AD1 was caused by a decrease in investment of $30 billion. What will the total decrease in aggregate demand be (i.e., AD0 to AD2) as a result of the initial $30 billion decrease?
A. $240 billion. B. $150 billion. C. $37.5 billion. D. $130 billion.
Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
Sam has two jobs, one for the winter and one for the summer. In the winter, he works as a lift attendant at a ski resort where he earns $13 per hour. During the summer, he drives a tour bus around the ski resort, earning $11 per hour. During the winter months, what is Sam's opportunity cost of taking an hour off work to go skiing?
a. $13 b. between $11 and $12 c. $11 d. less than $11