Refer to Figure 13-2. Ceteris paribus, a decrease in productivity would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.
B
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As a firm increases its output, its average total cost decreases. This is an outcome of:
A) the Law of Demand. B) economies of scale. C) diseconomies of scale. D) the Law of Diminishing Returns.
In 2014, ________ of the uninsured were younger than age 35
A) about 10 percent B) less than one-third C) over half D) almost 85 percent
If price decreases by 10 percent and quantity demanded increases by 30 percent, the price elasticity of demand will be
A) 0.333. B) 3. C) 30. D) 300.
Suppose a monopsonist wants to hire more workers. If it has to pay the same wage rate to all of its workers
a. the marginal labor cost will fall while the wage rate will rise b. the wage rate will fall while the marginal labor cost will rise c. the difference between the wage rate and the marginal labor cost will decrease d. the difference between the wage rate and the supply curve of labor will increase e. both the wage rate and the marginal labor cost will increase