The profit-maximizing quantity of labor equates the marginal product of labor with A) total factor productivity. B) the marginal product of capital. C) the real wage. D) the average product of labor. ANSWER C
Date: September 10th, 2020
Which of the following statements is (are) correct? Keynesians criticize the new classical theory because a. the new classical model cannot explain changes in expectations. b. of the contracting market characterization of the labor market. c. the rational expectations assumption ascribes an extreme and unrealistic availability of information to market participants. d. All of the […]
Date: September 10th, 2020
Adam Smith (1776) claimed that less governmental regulation, not more, would provide incentives for individuals to allocate resources efficiently, specialize and trade. Specialization and trade would generate wealth and result in economic growth and development. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The total multiplier of government expenditure is A) zero. B) between zero and one. C) one. D) larger than one. ANSWER B
Date: September 10th, 2020
At equilibrium income: a. planned and actual expenditure are equal. b. GDP will remained unchanged until an exogenous shock occurs. c. unplanned inventories are equal to zero. d. all of the above. ANSWER D
Date: September 10th, 2020
Keynes believed that the precautionary demand for money varied a. negatively with income. b. positively with income. c. negatively with the interest rate. d. positively with the interest rate. e. Both b and c ANSWER E
Date: September 10th, 2020
An increase in immigration would a. have no effect on the labor supply curve and real wages. b. shift the labor supply curve to the left and increase real wages. c. shift both the labor demand curve and the labor supply curve to the left. d. shift the labor supply curve to the right and […]
Date: September 10th, 2020
Assuming a 5-percent decrease in both the nominal (money) wage and 5-percent increase in the price level in the classical model, then a. both the quantity supplied and demanded of labor will increase. b. the quantity supplied of labor will increase and the quantity demanded of labor will decrease. c. both the quantity supplied and […]
Date: September 10th, 2020
Time inconsistency is a problem when policymakers a. have no flexibility in setting policy. b. follow inflexible rules. c. have discretion in their policy responses to changes in economic conditions. d. does not follow the Taylor rule. e. none of the above. ANSWER B
Date: September 10th, 2020
When moving from gross domestic product to gross national product, one has to a. add earnings by foreign residents and firms in the United States. b. subtract earnings by foreign residents and firms in the United States. c. subtract foreign earnings of U.S. residents and firms. d. add foreign earnings of U.S. residents and firms. […]
Date: September 10th, 2020
