Which of the following, may result in an increase in the relative price of primary products in the world market?
A. Productivity growth in the primary sectors is slower than that in the manufacturing sectors.
B. The marginal cost of producing the primary goods declines over time.
C. The stock of inventories of primary products unexpectedly increases.
D. The demand for primary products declines over time.
Answer: A
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Which of the following statements is true?
A) Technological innovation can cause unemployment in a country as a whole. B) Technological innovation always complements labor. C) Technological innovation can cause unemployment in a single industry. D) Technological innovation always substitutes labor.
In a closed economy, a decrease in government spending while taxes remain the same will be accompanied by
A) a decrease in private investment and an increase in privates saving. B) an increase in private investment and a decrease in private savings. C) a decrease in private investment only. D) an increase in private savings only.
As wages and prices become more flexible ________
A) wages becomes less responsive to unemployment deviations from the natural rate B) it becomes easier to differentiate the short-run from the long-run Phillips curve C) inflation becomes more responsive to unemployment deviations from the natural rate D) all of the above E) none of the above
The term tax incidence refers to how the burden of a tax is distributed among the various people who make up the economy
a. True b. False Indicate whether the statement is true or false