The link between the productivity of labor and the standard of living is A) tenuous and changing. B) inverse. C) that over the long run, consumers as a whole can increase their rate of consumption only by increasing labor productivity. D) that over the long run, consumers’ rate of consumption is not related to labor […]
One of the factors contributing to the fact that labor productivity is higher in the U.S. than in the People’s Republic of China is A) China’s larger stock of capital. B) the higher capital/labor ratio in China. C) the higher capital/labor ratio in the U.S. D) China’s smaller stock of fossil fuels. E) the fact […]
You want to add a new room on your house, but you are not familiar with the local building contractors and are not sure who to consider for the job. If you ask your friends for referrals, you are using their past experience as a way to evaluate the ________ of the builders. A) efficiency […]
Suppose your firm operates in a perfectly competitive market and decides to double its output. How does this affect the firm’s marginal profit? A) Marginal revenue and marginal cost increase B) Marginal revenue increases but marginal cost remains the same C) Marginal cost may change but marginal revenue remains the same D) Marginal revenue and […]
To avoid the stock versus flow issue in production, some economists discuss capital usage in terms of rented capital. For example, your firm may not directly own some of the capital inputs to your production operation, and these capital inputs are employed on an hourly or daily basis. Which of the following inputs is a […]
A consumer or producer who does not pay for use of a nonexclusive good but expects others to pay is known as a: A) free rider. B) price setter. C) fringe element. D) none of the above ANSWER A
Being “unequal” is seen as a more serious calamity that being poor. Indicate whether the statement is true or false ANSWER F
The present value formula makes it apparent that: A) a decline in the interest rate will cause a decision maker to weigh recent period returns relatively more heavily than before the decline. B) an increase in the interest rate will cause a decision maker to weigh distant (or future) returns relatively more heavily than before […]
The government provides public education because A) public education is a public good. B) public education is non-rival and nonexclusive. C) private education is rival and exclusive. D) public education combats the negative externalities of private education. E) public education provides positive externalities. ANSWER E
When the demand curve is downward sloping, marginal revenue is A) equal to price. B) equal to average revenue. C) less than price. D) more than price. ANSWER C
