All else constant, an improvement in technology would cause a firm's total, average and marginal product functions to increase (graphically, shift up)
Indicate whether the statement is true or false
TRUE
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If a tax on gasoline is appropriately set, the congestion externality on roads can be fully internalized -- resulting in the efficient level of congestion on roads.
Answer the following statement true (T) or false (F)
Over long periods of time, labor productivity growth rates must differ by at least ____ percent to yield significant differences in standards of living
a. 1 b. 5 c. 10 d. 15
What are the Euler Equations?
A. another name for the objective function B. another game for the first order conditions, defining optimal choices C. equations relating the optimal choice of interest rates to other prices D. both A and B, but not C
Aggregate demand decreases and real output falls, but the price level remains the same. Which factor most likely contributes to downward price inflexibility?
A. The wealth effect. B. Business taxes. C. Fear of price wars. D. The multiplier effect.