During economic downswings
A. output falls faster than employment, and the ratio of output to workers rises.
B. employment falls faster than output, and the ratio of output to workers rises.
C. output falls faster than employment, and the ratio of output to workers falls.
D. employment falls faster than output, and the ratio of output to workers falls.
Answer: C
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The Bush tax cuts
a. reduced tax rates for the upper brackets and increased tax rates for lower income taxpayers. b. reduced tax rates for the upper brackets and held constant tax rates for lower income taxpayers. c. reduced tax rates for the upper brackets and decreased tax rates for lower income taxpayers. d. held constant tax rates for the upper brackets and decreased tax rates for lower income taxpayers. e. Increased tax rates for the upper brackets and decreased tax rates for lower income taxpayers.
Which of the following is true for perfect competition, monopolistic competition, and monopoly?
A. The product of all firms is homogeneous. B. Firms will earn zero economic profits in the long run. C. Short-run profits are maximized when marginal cost equals marginal revenue. D. Price is greater than marginal cost at the profit-maximizing quantity.
Which statement is correct?
A. Monopolist firms are sheltered from competitive forces and such an environment makes them subject to X-inefficiency. B. Monopolist firms are in industries with low barriers to entry that tend to lower the cost of producing products. C. Competitive firms tend to be more efficient than monopolist firms because they maximize per-unit profits, not total profits. D. Monopolist firms tend to be more internally efficient than competitive firms because they have a single goal of profit maximization.
Changes in GDP in the medium run are determined primarily by
A) demand factors. B) supply factors. C) monetary policy. D) all of the above