The majority of evidence points to the fact that, in the last decade in the United States, labor productivity has A) stayed the same. B) increased. C) decreased in the manufacturing sector but increased in the service sector. D) decreased. ANSWER B
Date: September 2nd, 2020
One tenet of classical economics is that A) the role of the government should be limited, since the market will always be self-correcting. B) the government should set a minimum wage slightly above the natural market equilibrium rate. C) the government should intervene whenever necessary to avoid any unemployment. D) wages and prices are “sticky […]
Date: September 2nd, 2020
The aggregate supply curve shows A) the total of all planned production for an economy. B) that real GDP can only increase when the price level increases. C) what an economy can produce if resource prices are constant. D) the various quantities of goods consumers will purchase. ANSWER A
Date: September 2nd, 2020
Labor productivity rises when A) average worker output rises. B) nominal wages fall. C) average worker output falls. D) business investment falls. ANSWER A
Date: September 2nd, 2020
Aggregate supply A) is the overall wealth within an economy. B) is the total of all planned production in an economy. C) is the total amount of raw materials available in an economy. D) is the total amount of money circulating in an economy. ANSWER B
Date: September 2nd, 2020
Which of the following statements about the classical model of the economy is FALSE? A) Individuals pursue the public interest, not their own self-interest. B) The economy will always move toward, or be at, full employment. C) Savings and investment will always be equal. D) Wages and prices are flexible. ANSWER A
Date: September 2nd, 2020
If you feel you are better off because you receive a 10 percent raise even when the price level also increases by 10 percent, then you are a victim of the A) real purchasing power effect. B) money income effect. C) real income effect. D) money illusion. ANSWER D
Date: September 2nd, 2020
We draw the long-run aggregate supply curve as a vertical line to reflect the fact that A) changes in the price level do not alter the level of long-run real GDP after full adjustment has occurred. B) an accurate depiction of the production possibilities curve is vertical after full adjustment has occurred. C) technology and […]
Date: September 2nd, 2020
Suppose a country experiences an increase in output per worker. Such a development represents which of the following? A) an increase in labor productivity B) an increase in population growth C) a reduction in the saving rate D) a decrease in economic growth ANSWER A
Date: September 2nd, 2020
The level of real GDP identified by the long-run aggregate supply curve is A) the level of GDP at which each industry is experiencing growth in sales. B) the level of GDP at which each business firm is experiencing growth in sales. C) the level of GDP at which no one is below the poverty […]
Date: September 2nd, 2020
