chapter_9_long

chapter_9_long - Exam Name MULTIPLE CHOICE Choose the one...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) A consumer may increase his or her saving by A) working more hours and consuming fewer goods in the present period. B) working fewer hours and consuming fewer goods in the present period. C) working fewer hours and consuming more goods in the present period. D) working more hours and paying less taxes in the present period. E) working more hours and consuming more goods in the present period. 1) 2) When drawn against the real interest rate, the optimal investment schedule shifts to the right if A) future total factor productivity z ȇ decreases. B) future total factor productivity z ȇ increases. C) future total factor productivity z ȇ remains constant. D) current total factor productivity z decreases. E) current total factor productivity z increases. 2) 3) The response of output following a natural disaster includes A) an increase in output demand and an increase in output supply. B) a decrease in output demand and an increase in output supply. C) only a decrease in output demand. D) an increase in output demand and a decrease in output supply. E) a decrease in output demand and a decrease in output supply. 3) 4) The output demand curve shows the A) negative relationship between the real interest rate and current aggregate output. B) negative relationship between the wage rate and current aggregate output. C) positive relationship between total factor productivity and current aggregate output. D) positive relationship between the real interest rate and current aggregate output. E) positive relationship between the wage rate and current aggregate output. 4) 5) The condition, MRS l, C = w, describes the representative consumer ȇ s A) future consumption - savings decision. B) future period work N leisure decision. C) investment decision. D) current period work N leisure decision. E) current consumption N savings decision. 5) 6) The equilibrium effects of a sectoral shift include A) a decrease in the real wage and a decrease in the real interest rate. B) a decrease in the real wage and an increase in the real interest rate. C) a decrease in the real wage only. D) an increase in the real wage and a decrease in the real interest rate. E) an increase in the real wage and an increase in the real interest rate. 6) 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
7) The output supply curve is the relationship between output and A) total factor productivity. B) real interest rates. C) investment. D) capital stock. E) labour supply. 7) 8) The firm will hire current labour until A) the marginal product of labour equals total employment. B) total factor productivity is maximized. C) profits are maximized. D) the marginal product of labour equals the wage rate. E) the marginal product of labour is less than the real interest rate.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 12

chapter_9_long - Exam Name MULTIPLE CHOICE Choose the one...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online