Refer to Figure 5.1. All else equal, an increase in total factor productivity will cause a
A) shift from PF1 to PF2.
B) shift from PF2 to PF1.
C) movement up and to the right along PF1.
D) movement down and to the left along PF2.
A
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The use of a dummy variable in regression analysis indicates
A) that a researcher does not really know what to include in the equation. B) that a categorical variable is expected to have an impact on a dependent variable. C) that insufficient data is available for the analysis. D) the use of hypothetical data.
When a shortage occurs in the market for a good, quantity
a. demanded exceeds quantity supplied and the market mechanism pushes the price up, which in turn encourages more production and less consumption. b. supplied exceeds quantity demanded and the price falls, which encourages more production and less consumption. c. demanded exceeds quantity supplied and the market mechanism pushes the price down, which encourages more production and less consumption. d. supplied exceeds quantity demanded and the price rises, which encourages more production and less consumption.