An increase in human capital will tend to cause which of the following? A) increase labor productivity B) increase the standard of living C) increase economic growth D) all of the above ANSWER D
Date: September 2nd, 2020
Why is the long-run aggregate supply curve a vertical line? A) At that level of real GDP, the production costs are at their lowest level. B) At that level of real GDP, production costs have fully adjusted to price changes. C) At that level of real GDP, the unemployment rate is 0 percent. D) At […]
Date: September 2nd, 2020
Which of the following is NOT a flow variable? A) saving B) consumption C) investment D) savings ANSWER D
Date: September 2nd, 2020
Which one of the following does NOT contribute to economic growth? A) increases in the price level B) the growth of capital and labor productivity C) the growth of the labor force D) the growth of the capital stock ANSWER A
Date: September 2nd, 2020
With respect to unemployment, the classical model states that A) unemployment of any kind cannot exist. B) involuntary unemployment will always exceed voluntary unemployment. C) unemployment fluctuates with the interest rate. D) only voluntary unemployment exists. ANSWER D
Date: September 2nd, 2020
At a level of real disposable income of $1,000, suppose consumption is $2,000. Given this information, we know with certainty that saving equals A) $2,000. B) $0. C) -$1,000. D) -$2,000. ANSWER C
Date: September 2nd, 2020
The formula for the computation of labor productivity is A) nominal GDP/number of workers. B) real GDP/number of workers. C) nominal GDP/population. D) real GDP/population. ANSWER B
Date: September 2nd, 2020
What is measured on the horizontal axis when we draw a graph of the long-run aggregate supply curve? A) production of consumer goods B) real GDP C) production of capital goods D) the price level ANSWER B
Date: September 2nd, 2020
According to classical theory, full employment in the labor market occurs A) only when actual expenditures are greater than desired expenditures. B) only when the economy has just experienced a demand shock. C) whenever aggregate demand is less than aggregate supply. D) at a wage rate at which quantity demanded equals quantity supplied. ANSWER […]
Date: September 2nd, 2020
The most important thing about higher labor productivity is that it means A) we can compete well with other nations. B) we are doing better than anyone else is. C) we can achieve a happier population. D) we can have a higher standard of living. ANSWER D
Date: September 2nd, 2020
