Refer to Figure 7.1. Start from initial equilibrium. If firms reduce their capital stock, the new real wage could be ________ and the new amount of labor employed could be ________
A) X; C B) X; A C) Z; C D) Y; C
B
You might also like to view...
Classical economists argue that
A) the government should have an active role in the economy. B) government policies will be ineffective and counterproductive. C) the government should actively intervene in the economy to eliminate business cycles. D) wages and prices don't adjust quickly, so the economy is slow to return to equilibrium.
Which of the following was NOT a part of Chandler's (1977) description of the rise of big business in the 19th century?
(a) Vertical integration of firms (b) The development of mass production (c) The development of mass distribution (d) The use of central planning to improve production techniques
Which of the following is the best example of a product or service that provides a benefit externality?
A) the construction of a private road that allows vehicles if a toll is paid B) a public library C) a bookstore that is open to everyone D) All of the above E) None of the above
Answer the following statement(s) true (T) or false (F)
1. When U.S. tourists go abroad, their use of hotels and other services is recorded in service exports in the current account. 2. A current account deficit in the U.S. balance of payments coincides with a financial account surplus. 3. If a U.S. resident obtains a loan from a foreign bank, the transaction is recorded in the financial account of the U.S. balance of payments. 4. When the U.S. balance of payments is zero, then the number of U.S. dollars demanded equals the number of U.S. dollars supplied. 5. A consumer in a foreign country who is buying U.S. goods must sell U.S. dollars to obtain foreign currency to pay for those goods.