Answer the following statement true (T) or false (F)
1) Elasticity of resource demand is measured by dividing "percentage change in resource price"
by "percentage change in resource quantity."
2) An increase in the price of capital will reduce the demand for labor if capital and labor are
complementary resources.
3) The marginal productivity theory of income distribution holds that all resources are paid
according to their marginal contribution to society's output.
4) The marginal productivity theory of income distribution holds that all resources are paid
according to their marginal contribution to society's output.
1) F
2) T
3) T
4) F
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The opportunity cost of going to college full time away from home includes
A) the income you could have earned from a full-time job. B) the funds you would have saved if you had not paid the tuition. C) the time you could have spent with friends back home. D) All of the above are correct.
The term recession refers to
A. a period of decline in real GDP for two business quarters. B. a fall in the general level of real wages. C. a fall in the CPI. D. a fall in the rate of increase of real per capita GDP.
Recall the Application about the benefits generated when one country gathers information on global weather to answer the following question(s).Recall the Application. When the U.S. acquires and then shares weather data with organizations in other countries:
A. both the U.S. economy and the economies of other countries benefit. B. the U.S. does not benefit and other countries free ride. C. the information is excludable and rival. D. the information is incomplete because no country can monitor oceans outside its own borders.
The importance of the bank-lending channel of monetary policy transmission:
A. has become more important as technology has solved the problems of information and moral hazard. B. becomes more important the more important banks are as a source of funds for firms and individuals. C. is likely to become more important with the growth of loan brokers and asset-backed securities. D. none of the answers given is correct.