An increase in pollution has caused a permanent increase in the rate of capital depreciation. This would cause
A) an increase in the capital—labor ratio.
B) output per worker to fall.
C) a decline in consumption per worker.
D) the capital—labor ratio to be unaffected.
B
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An expenditure maximizing multi-product firm will set the same relative prices as a welfare maximizing firm
Indicate whether the statement is true or false
A 10 percent decrease in advertising results in a 5 percent sales decrease. The advertising elasticity of demand is ________
A) -2.0 B) -0.5 C) 0.5 D) 2 E) none of the above
What is a term referring to a table that shows the quantity supplied at a range of different prices?
a. demand curve b. demand schedule c. supply curve d. supply schedule
What will happen to the demand for reserves if real GDP increases?
a. It will shift outward. b. It will shift inward. c. It will remain unchanged. d. It depends on what happens to interest rates.