Which of the following statements is true? A. Firms usually tend to cut wages th

Question

Which of the following statements is true? A. Firms usually tend to cut wages than lay off people to cut costs. B. Firms tend to decrease wages in periods of contracting economic activity to boost labor productivity. C. Firms tend to increase wages in periods of contracting economic activity to boost morale. D. Firms usually tend to lay off workers than cut wages to reduce costs.

Which of the following statements is true? A. The type of institutions in a nation is considered a proximate cause of prosperity. B. Cultural and geographical factors that affect economic prosperity can be changed faster than the institutional factors that affect it. C. Societal religious beliefs and existing social norms are key proximate causes of economic prosperity. D. Institutions determine the degree to which society accumulates factors of production and adopts new technology.

If the value of the government multiplier is 1.5, which of the following is likely to be true if all other variables remain unchanged? A. A $1.50 increase in government expenditure increases gross domestic product by $1.50. B. A $1.50 increase in government expenditure reduces gross domestic product by $1.50. C. A $1 increase in government expenditure increases gross domestic product by $1.50. D. A $1 increase in government expenditure reduces gross domestic product by $1.50.

Which of the following causes the aggregate production function to shift up? A. An increase in the total efficiency units of labor B. An improvement in technology C. A decrease in the productivity of workers D. An increase in capital stock

An increase in the demand for a good is represented by: A. a movement down along the demand curve. B. a rightward shift of the demand curve. C. a movement up along the demand curve. D. a leftward shift of the demand curve.

Which of the following factors of production is least likely to show diminishing marginal product? A. Land B. Capital C.Technology D. Labor

Assume that the supply curve for a commodity shifts to the right and the demand curve shifts to the left, and the shift in demand is greater than the shift in supply. Then, in comparison to the initial equilibrium, the new equilibrium will be characterized by: A. a lower price and a higher quantity. B. the same price and a lower quantity. C. a higher price and a lower quantity. D. a lower price and quantity.

Which of the following statements is true of marginal analysis? A. Marginal analysis of alternatives will mostly give an outcome different from optimization in levels. B. Marginal analysis is a tool used in optimization in levels. C. Marginal analysis compares the consequences of doing one more step of something. D. Marginal analysis involves the calculation of total net benefits of all the available alternatives.

Which of the following explains why frictional unemployment exists in an economy? A. It arises because job search is completely a supply side phenomenon in the labor market, and firms make no attempts to advertise for the vacancies they have. B. It arises because it takes time for an unemployed worker to find a firm with a well minusmatched job vacancy. C. It arises because most of the workers shirk at work. D. It arises because unemployment benefits encourage workers not to look for jobs.

Which of the following statements is true? A. Countercyclical monetary policy stimulates the economy during a recession by shifting the labor demand curve to the left. B. Countercyclical monetary policy slows down the growth rate of an economy during an expansion by shifting the labor demand curve to the left. C. Countercyclical fiscal policy stimulates the economy during a recession by shifting the labor demand curve to the left. D. Countercyclical fiscal policy slows down the growth rate of an economy during an expansion by shifting the labor demand curve to the right.

The quantity theory of money: A. is an exact representation of how the economy behaves in the long minusrun. B. assumes that the ratio of money supply to nominal GDP increases over time. C. is a representation of how a change in money supply affects the price level in an economy. D.assumes that the ratio of money supply to nominal GDP decreases over time.

If the nominal interest rate is greater than the real interest rate in an economy: A. the real interest rate must be negative. B.inflation must be positive in the economy. C.inflation must be zero in the economy. D.inflation must be negative in the economy.

Explanation / Answer

Please don't ask so many questions as single question and that too, in such a jumbled form.

D. Firms usually tend to lay off workers than cut wages to reduce costs.

D. Institutions determine the degree to which society accumulates factors of production and adopts new technology.

C. A $1 increase in government expenditure increases gross domestic product by $1.50.

C. A decrease in the productivity of workers

A. a movement down along the demand curve.

C.Technology

D. a lower price and quantity.

C. Marginal analysis compares the consequences of doing one more step of something.

B.  It arises because it takes time for an unemployed worker to find a firm with a well minusmatched job vacancy

D. Countercyclical fiscal policy slows down the growth rate of an economy during an expansion by shifting the labor demand curve to the right.

C. is a representation of how a change in money supply affects the price level in an economy.

B.inflation must be positive in the economy

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