SOLUTION MANUAL FOR ECON 320 EXAM
1 QUESTIONS AND VERIFIED ANSWERS
A competitive, profit-maximizing firm fires labor until the -
correct answer- price of output multiplied by the marginal
product of labor equals the wage
A consumption function shows the relationship between
consumption and - correct answer- disposable income
A production function is a technological relationship between -
correct answer- factors of production and the quantity of
output produced
According to the classical theory of money, inflation does not
make workers poorer because wages increase - correct answer-
in proportion to the increase of overall price level
According to the definition used by the US Bureau of Labor Stats,
people are considered unemployed if - correct answer- do
not have a job, but have looked for work in the past 4 weeks
, According to the Fisher effect, the nominal interest rate moves
one-for-one with changes in the - correct answer- expected
inflation rate
According to the quantity theory of money, ultimate control
over the rate of inflation in the US is exercised by - correct
answer- The Federal Reserve
All are stock except:
1. consumers wealth
2. government's budget deficit
3. number of people unemployed
4. amount of capital in the economy - correct answer- gvmt
budget deficit
All of the following are flow except
1. number of new automobile purchases
2. number of people losing their jobs
3. business expenditures on plant and eq
4. the gvmt debt - correct answer- the government debt
1 QUESTIONS AND VERIFIED ANSWERS
A competitive, profit-maximizing firm fires labor until the -
correct answer- price of output multiplied by the marginal
product of labor equals the wage
A consumption function shows the relationship between
consumption and - correct answer- disposable income
A production function is a technological relationship between -
correct answer- factors of production and the quantity of
output produced
According to the classical theory of money, inflation does not
make workers poorer because wages increase - correct answer-
in proportion to the increase of overall price level
According to the definition used by the US Bureau of Labor Stats,
people are considered unemployed if - correct answer- do
not have a job, but have looked for work in the past 4 weeks
, According to the Fisher effect, the nominal interest rate moves
one-for-one with changes in the - correct answer- expected
inflation rate
According to the quantity theory of money, ultimate control
over the rate of inflation in the US is exercised by - correct
answer- The Federal Reserve
All are stock except:
1. consumers wealth
2. government's budget deficit
3. number of people unemployed
4. amount of capital in the economy - correct answer- gvmt
budget deficit
All of the following are flow except
1. number of new automobile purchases
2. number of people losing their jobs
3. business expenditures on plant and eq
4. the gvmt debt - correct answer- the government debt
