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
As of 2011, government debt as a percentage of GDP was ________ in the United States, compared to 29 other major economies. A) higher than average B) extremely low C) highest D) lower than average ANSWER A
Date: September 10th, 2020
Federal transfers are expected to grow significantly in the coming decades, due especially to increases in ________. A) federal government consumption B) federal deficits C) Medicare and Medicaid D) Social Security payments ANSWER C
Date: September 10th, 2020
When the representative firm maximizes profits, A) it sells as much as possible. B) the wage equals average labor productivity. C) the wage equals marginal labor productivity. D) business taxes must be zero. ANSWER C
Date: September 10th, 2020
A Cobb-Douglas production function is A) a production function for the textile industry. B) a particular production function that fits the data well. C) a production function applicable in the service industry. D) the production function that Henry Ford applied in his firm. ANSWER B
Date: September 10th, 2020
If government policy makers become more secretive, then the short run aggregate supply curve should get a. flatter. b. more horizontal. c. vertical. d. steeper. ANSWER B
Date: September 10th, 2020
Mercantilism followed feudalism. Unlike feudalism, mercantilism did not support any form of a strong central government or system of nation states. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
