The equilibrium effects of a prospective future increase in total factor productivity include A) an increase in the real wage and an increase in the real interest rate. B) an increase in the real wage and a decrease in the real interest rate. C) a decrease in the real wage and an increase in the […]
Date: September 10th, 2020
Secure rights to land provided colonists with incentive to use the land productively, conserve it and invest in it. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
After 1616, Virginia shifted more and more scarce resources out of food production and into tobacco production. Hence, the economic cost of tobacco production included the sacrifice of food production. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
If the real wage is equal to 7 widgets, and only an integer number of workers can be hired, the Widget company should hire A) 2 workers. B) 3 workers. C) 4 workers. D) 5 workers. ANSWER B
Date: September 10th, 2020
A recession is a period when a. output growth is negative for two consecutive quarters b. actual output falls below potential output and the rate of unemployment falls below the high- employment benchmark. c. unemployment reaches 10 percent for an extended period of time. d. actual output falls below potential output and the rate of […]
Date: September 10th, 2020
In the early 1980s, the disinflation in the United States a. was accompanied by rapidly growing deficits. b. was costless in terms of output and employment effects. c. was the result of a well-publicized expansionary monetary policy. d. did not result in a severe recession. ANSWER A
Date: September 10th, 2020
The object of U.S. technological choices, according to Rosenberg (1963), was to conserve scarce productive factors and exploit plentiful ones. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
In the United States, the strategy of monetary policy a. has not changed even as the economic environment has varied. b. has been to target interest rates. c. has been to target the money supply. d. None of the above ANSWER D
Date: September 10th, 2020
North’s (1955) theory of economic location is that of “balanced growth”—many industries in each region must advance at about the same time in order for economic growth to occur. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
A relatively steep money demand schedule reflects the assumption that the interest elasticity of money demand is a. low (in absolute value). b. high (in absolute value). c. zero. d. indefinite. ANSWER A
Date: September 10th, 2020
