Refer to Figure 10-2. Which of the following is consistent with the graph depicted above?
A) New government regulations decrease the profitability of new investment.
B) The government runs a budget surplus.
C) An expected expansion increases the profitability of new investment.
D) There is a shift from an income tax to a consumption tax.
A
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Per capita GDP tells us ________.
a. the average income (or output) of a country per person b. the amount of GDP adjusted for inflation c. the amount of GDP at the natural rate of unemployment d. the amount of GDP for a specific state
Unions can increase labor productivity by
A) maximizing the number of workers in the union. B) reducing the supply of workers over time. C) reducing conflicts between workers and management. D) reducing the quantity of poorly made imports into the country.
A value of the absolute price elasticity of demand equal to 0.5 indicates that
A) a 0.5% decrease in price leads to a 1% increase in quantity demanded. B) a 2% decrease in price leads to a 25% increase in quantity demanded. C) a 1% increase in price leads to a 5% decrease in quantity demanded. D) a 10% increase in price leads to a 5% decrease in quantity demanded.
If a country with a relatively high inflation rate maintains a pegged exchange rate against the currency of a relatively low inflation country
A. its exports will become less competitive in the international market. B. its currency will sell at a discount. C. its currency will depreciate. D. its exports will become more competitive in the international market.