The labor demand curve slopes downward because
a. firms wish to hire fewer workers as the wage rate increases
b. households wish to hire fewer workers as the wage rate decreases
c. firms wish to hire more workers as the wage rate increases
d. firms wish to supply fewer workers as the wage rate increases
e. households wish to provide fewer hours of work as the wage rate decreases
Assume the economy is currently in equilibrium. Use the following information to
calculate the total value of leakages
Total injections are
a. $10.7 trillion
b. $5.1 trillion
c. $5.9 trillion
d. $5.7 trillion
e. $5.3 trillion
A monopoly exists because of
Monopolistic competition exists when there is one large firm in an otherwise perfectly
competitive market.
When people buy land, their purchases are included in GDP.
The ratio (in physical units) at which two countries trade goods is known as the
a. opportunity cost
b. marginal social cost
c. price to earnings ratio
d. comparative advantage ratio
e. terms of trade
If firms increase their investment spending, the resulting change in equilibrium GDP is
equal to the change in investment spending
a. multiplied by 2.5
b. alone
c. multiplied by the expenditure multiplier
d. divided by the marginal propensity to consume
e. plus the change in consumption spending
If the firm represented in Figure 11-7 is typical of other firms in the industry, then, as
the long run approaches,
Which of the following will the Federal Reserve do in order to increase the money
supply?
a. sell government bonds
b. buy corporate bonds
c. sell common stock
d. buy government bonds
e. increase the salaries of its governors
Refer to Figure 11-2. Use the graph to determine the marginal propensity to consume.
a. 0.50
b. 0.60
c. 0.75
d. 0.80
e. 0.90
A decline in real income
a. can occur only if there is a decline in nominal income
b. can occur only if there is an increase in the price level
c. can occur only if there is either a decline in nominal income or an increase in the
price level
d. cannot occur if there is either an increase in nominal wages or a decline in the price
level
e. can occur only if there is a decline in the price level
Government can play a crucial role in promoting economic efficiency by