A temporary adverse productivity shock would

A. decrease the level of employment.
B. decrease the expected future marginal product of capital.
C. shift the labor supply curve upward.
D. decrease future income.


Answer: A

Economics

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Suppose that many consumers tend to over-state the discount rate that should be used for computing the net present value of education, just as they do when making investments in durable goods like cars and appliances

What would happen if consumers (as a group) started to use lower discount rates when making decisions about their education? A) NPV of a degree declines, demand for eduction declines B) NPV of a degree declines, demand for education increases C) NPV of a degree increases, demand for education declines D) NPV of a degree increases, demand for education increases

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Suppose that there is a negative externality associated with alcohol consumption in the United States (e.g., costs of publicly funded alcoholism treatment centers). What will happen to the social costs of this externality if the United States eliminates all tariffs on alcohol imports?

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Using Figure 1.4, we know the production of 6 units of soda and 2 units of pizza isĀ 

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Economics