The skills and knowledge possessed by workers are referred to as
a. labor capital
b. human technology
c. labor tools
d. labor technology
e. human capital
Which of the following jobs is most likely to have a positive compensating wage
differential?
Which of the following helps encourage specialization?
The formula for calculating the tax multiplier is
a. MPC/(1 – MPC)
b. MPC/(1 + MPC)
c. -MPC/(MPC – 1)
d. -MPC/(1 – MPC)
e. MPC + (1 – MPC)
According to Keynesian economists,
a. the economy will return quickly to full employment in most cases
b. if output is below its potential, the economy will soon return to full employment
c. production can be stuck below its full-employment level for extended periods of time
d. the Great Depression proved that classical economics does a good job of explaining
how the economy operates
e. he economy will achieve full employment in the short run but, in the long run, GDP
will fluctuate
Suppose a local bookstore notices that a 2 percent increase in book prices leads to a 2
percent decrease in the number of books sold. Which of the following is true?
Suppose that British tastes changed and American goods become more desirable to
British citizens. There would be
a. a leftward shift of the supply of pounds curve.
b. a movement downward along the supply of pounds curve.
c. a movement upward along the supply of pounds curve.
d. a rightward shift in the supply of pounds curve.
e. a rightward shift in the demand curve for pounds..
The 1990 U.S. recession was
a. triggered by a negative supply shock
b. characterized by falling wage rates as the economy began to correct itself
c. relatively painless
d. triggered by a negative demand shock
e. characterized by disinflation
Suppose the current equilibrium real wage is $15 an hour. Which of the following is
true?
a. A real wage above $15 an hour would lead to an excess demand for labor
b. A real wage above $15 an hour would lead to an excess supply of labor
c. The real wage must fall to prevent unemployment
d. The real wage must rise to prevent unemployment
e. A real wage below $15 an hour would lead to an excess supply of labor
Which organization has the goal of helping to provide capital and investment assistance
to less-developed nations?
a. The World Trade Organization
b. The International Development Fund
c. The European Union
d. The International Monetary Fund
e. NATO
If newspaper headlines detailed an increased American interest in British goods, which
of the following would we expect to observe in the market for pounds?
a. An increase in supply, a depreciation of the pound, and a larger number of pounds
traded
b. An increase in demand, a depreciation of the pound, and a smaller number of pounds
traded
c. An increase in demand, an appreciation of the pound, and a larger number of pounds
traded
d. A decrease in demand, a depreciation of the pound, and a smaller number of pounds
traded
e. A decrease in supply, an appreciation of the pound, and a smaller number of pounds
traded.
If the exchange rate (dollars per unit of foreign currency) has increased, we say there
has been a(n)
a. appreciation of the foreign currency
b. depreciation of the foreign currency
c. revaluation of the foreign currency
d. devaluation of the foreign currency
e. fixing of the foreign currency
If the income elasticity of demand for a good is 0.5, then
The key difference between a share of stock and a bond is that
Figure 8-4 indicates data for the total cost curve and the demand curve facing
Jonathan’s Riding Mower Shop. The quantities indicated are potential daily sales.
Jonathan’s profit-maximizing sales level is
A car rental company will earn a net income of $6,000 per year on a new car for the
first three years of its life. After three years, the car will be worthless. If the interest rate
is 10 percent (0.10) per ear, what is the present value of the car to the car rental
company? (Assume that each year’s income is received at the end of the year.)
Imagine a budget line depicting a consumer’s possible allocation of a given income
between fruit and vegetables. If the consumer’s income increases at the same time the
price of vegetables rises, the budget line’s intercept with the
If marginal cost is greater than average total cost then
Which of the following statements about a firm’s demand curve for labor is true?
If you carefully research the products, technologies, patents, and management of firms,
the efficient markets theory of stock prices, predicts that