Refer to the above diagram. If the production possibilities curve of an economy shifts from AB to CD, it is most likely the result of what factor affecting economic growth?
A. An allocation factor.
B. An efficiency factor.
C. A demand factor.
D. A supply factor.
Answer: D
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If an individual's supply of labor curve is positively sloped throughout, then:
a. the substitution effect always dominates the income effect. b. the income effect always dominates the substitution effect. c. the substitution effect dominates at low real wage levels and the income effect dominates at high real wage levels. d. the income effect dominates at low real wage levels and the substitution effect dominates at high real wage levels.
In the 1990s, the unemployment rates in the U.S. were higher than that in the European nations
a. True b. False Indicate whether the statement is true or false
The extra revenue that results from hiring another worker is
A. the marginal revenue of output. B. the marginal revenue product of labor. C. the average revenue of output. D. the marginal input cost.
Seasonal or cyclical variation in a time series model
A. is regular in nature and can be accounted for by dummy variables. B. can decrease the accuracy of a forecast if not accounted for by dummy variables. C. exhibits irregular variation that can be accounted for by dummy variables. D. both a and b E. both b and c