Homework Answers
Answer
C) the increase in Inventia's output will be more than the increase in Xenonia's output
Since there is more labour supply in Xenonia while their captal stock remains unchanged , therefore output will be more in Inventia.
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27) Xenonia has a larger supply of labor than does Inventia. If the labor supply in...
Country A has a smaller stock of capital than Country B, but the supply of labor...
Country A has a smaller stock of capital than Country B, but the supply of labor in both countries is equal. What does this imply? A) The increase in output due to the use of an additional unit of capital will be smaller in Country A than in Country B. B) The increase in output due to the use of an additional unit of capital will be larger in Country A than in Country B. C) The use of an...
Scenario: Country X and Country Y production amount of physical capital stock available to each country is also equal. However, the labor supply for Country X is Ho while the labor supply for Cou...
Scenario: Country X and Country Y production amount of physical capital stock available to each country is also equal. However, the labor supply for Country X is Ho while the labor supply for Country Y is Hy identical aggregate production functions as shown in the figure below. The Output 0 H, H, Efficiency units of Labor 8) Refer to the scenario above. A one-unit increase in the efficiency units of labor will lead to in output in Country X than...
Portfolio P has equal amounts invested in each of the three stocks, A, B, and C....
Portfolio P has equal amounts invested in each of the three stocks, A, B, and C. Stock A has a beta of 0.8, Stock B has a beta of 1.0, and Stock C has a beta of 1.2. Each of the stocks has a standard deviation of 25%. The returns on the three stocks are independent of one another (i.e., the correlation coefficients all equal zero). Assume that there is an increase in the market risk premium, but the risk-free...
If wages increase, will a worker supply more labor? O A. Only if the income effect...
If wages increase, will a worker supply more labor? O A. Only if the income effect is larger than the substitution effect. OB. Yes because the substitution effect causes workers to supply a larger quantity of labor. O C. Only if the substitution effect is larger than the income effect. O D. Yes because the substitution and income effects both cause workers to supply a larger quantity of labor. O E. No because purchasing power has increased and leisure is...
4. If nominal money demand doubles and the real money supply also does what happens to...
4. If nominal money demand doubles and the real money supply also does what happens to the price level ( ). The price level increases by a factor of four b. The price level doubles ). The price level is unchanged. d. The price level falls by one-half. IL Short-Answer O stiens (19 points) 5. (7 points) If the Federal Reserve sold government securities, then the money supply (increase decrease remain the same), the money he would _(increase decrease remain...
If a country's labor and capital grow at the same rate,
If a country's labor and capital grow at the same rate, is this likely to have the same impact on the growth rate of output? Yes. If labor and capital are growing at the same rate, the impact on the growth rate of output is the same. No. Growth in labor always has a bigger impact than growth in capital. No. Growth in capital always has a bigger impact than growth in labor. It depends on whether the capital share of output is larger...
Question 27 1 pts If the marginal product of labor is 40 units and the marginal...
Question 27 1 pts If the marginal product of labor is 40 units and the marginal product of capital is 200 units, while the price of labor is $50 per worker and the price of capital is $300 per unit of capital, what would the producer do? The producer would use less of both capital and labor. The producer would use more of both capital and labor. The producer would use the same amount of both capital and labor as...
If wages increase, will a worker supply more labor? O A. Only if the effect of...
If wages increase, will a worker supply more labor? O A. Only if the effect of the increase in purchasing power is larger than that of the opportunity cost of leisure increasing. OB. Yes because the opportunity cost of leisure is higher. O C. Only if the effect of the opportunity cost of leisure increasing is larger than that of the increase in purchasing power. O D. Yes because the substitution and income effects both cause workers to supply a...
Stock A has a beta of 0.8 and Stock B has a beta of 1.2. 50%...
Stock A has a beta of 0.8 and Stock B has a beta of 1.2. 50% of Portfolio P is invested in Stock A and 50% is invested in Stock B. If the market risk premium (r M − rRF) were to increase but the risk-free rate (r RF) remained constant, which of the following would occur? a. The required return would increase for Stock B but decrease for Stock A. b. The required return would increase for Stock A...
12. When the Federal Reserve increases the money supply, at a given price level the amount...
12. When the Federal Reserve increases the money supply, at a given price level the amount of output demanded is and the aggregate demand curve shifts a. greater, inward b. greater, outward c. lower, inward d. lower, outward 13. Aggregate supply is the relationship between the quantity of goods and services supplied and the a. Money supply b. Unemployment rate c. Interest rate d. Price level If a short-run equilibrium occurs at a level of output above the natural level,...
Scenario: Country X and Country Y production amount of physical capital stock available to each country is also equal. However, the labor supply for Country X is Ho while the labor supply for Country Y is Hy identical aggregate production functions as shown in the figure below. The Output 0 H, H, Efficiency units of Labor 8) Refer to the scenario above. A one-unit increase in the efficiency units of labor will lead to in output in Country X than...
If wages increase, will a worker supply more labor? O A. Only if the income effect is larger than the substitution effect. OB. Yes because the substitution effect causes workers to supply a larger quantity of labor. O C. Only if the substitution effect is larger than the income effect. O D. Yes because the substitution and income effects both cause workers to supply a larger quantity of labor. O E. No because purchasing power has increased and leisure is...
4. If nominal money demand doubles and the real money supply also does what happens to the price level ( ). The price level increases by a factor of four b. The price level doubles ). The price level is unchanged. d. The price level falls by one-half. IL Short-Answer O stiens (19 points) 5. (7 points) If the Federal Reserve sold government securities, then the money supply (increase decrease remain the same), the money he would _(increase decrease remain...
Question 27 1 pts If the marginal product of labor is 40 units and the marginal product of capital is 200 units, while the price of labor is $50 per worker and the price of capital is $300 per unit of capital, what would the producer do? The producer would use less of both capital and labor. The producer would use more of both capital and labor. The producer would use the same amount of both capital and labor as...
If wages increase, will a worker supply more labor? O A. Only if the effect of the increase in purchasing power is larger than that of the opportunity cost of leisure increasing. OB. Yes because the opportunity cost of leisure is higher. O C. Only if the effect of the opportunity cost of leisure increasing is larger than that of the increase in purchasing power. O D. Yes because the substitution and income effects both cause workers to supply a...
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