Growth in real wage rates is closely tied to growth in labor productivity
a. True
b. False
Indicate whether the statement is true or false
True
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Once a monopoly has determined how much it produces, it will charge a price that
A) is determined by the intersection of the marginal cost and average total cost curves. B) minimizes marginal cost. C) is determined by its demand curve. D) is independent of the amount produced. E) is equal to its average total cost.
The current price of wheat is $10 per bushel, but the equilibrium price of wheat is $5 per bushel. As a result, a. the quantity supplied of wheat exceeds the quantity demanded of wheat at $10 per bushel. b. the equilibrium quantity of wheat exceeds the quantity demanded at the $10 price
c. there is a surplus of wheat at the $10 price. d. All of the above are correct.
Most economists believe that the immediate cause of cyclical changes in the levels of real output and employment is:
What will be an ideal response?
Suppose that Paraguay and Guyana are both engaged in the production of soybeans and grapefruit, and that Paraguay has an absolute advantage in the production of both goods. If Guyana has a comparative advantage in the production of soybeans, then Guyana
A. should continue to produce soybeans, but only for domestic consumption, because trade is not a viable option. B. has a lower opportunity cost for producing soybeans, but specialization is not feasible because Paraguay has a lower monetary cost of soybean production. C. has a lower opportunity cost for soybeans, which means that it should specialize in production of soybeans and engage in trade. D. has a higher opportunity cost for soybeans, which means it should specialize in the production of grapefruit and engage in trade.