Total factor productivity is the ratio of a:

Total factor productivity is the ratio of a:
 a. firm's marginal revenue to its marginal cost.
  b. firm's total revenues to its total costs.
  c. nation's total income to its total output.
  d. nation's output to its stock of labor and capital.
  e. nation's savings to its capital stock.

Question 2

An increase in demand will increase the quantity sold but not the price in a market if:
 a. supply is perfectly elastic
 b. supply is perfectly inelastic
  c. supply is relatively elastic
 d. supply is relatively inelastic

Question 3

An increase in the money supply:
 a. will definitely result in inflation if unemployment is high and there is much unused industrial capacity.
  b. shifts the aggregate demand curve to the left.
 c. will probably result in inflation if the economy is fully employed.
 d. causes interest rates to rise.

Question 4

_____ is the ratio of an economy's output to its stock of labor and capital.
 a. Productive capacity
  b. Multifactor productivity
  c. Marginal product of labor
  d. Workforce productivity
  e. Total factor productivity

Question 5

For a given increase in price, the greater is the elasticity of supply, the greater is the resulting
 a. decrease in quantity supplied.
  b. decrease in supply.
 c. increase in quantity supplied.
  d. increase in supply.

Question 6

When the demand for money increases,
 a. The money supply must rise if the Fed is targeting interest rates..
  b. The money supply must fall if the Fed is targeting interest rates..
  c. Interest rates must rise if the Fed is targeting the money supply.
  d. Both a. and c. are correct.

Question 7

Other things remaining equal, total factor productivity will fall if _____.
 a. labor input grows more slowly than total output
  b. capital input grows faster than total output
  c. the economy's output divided by total inputs increases
  d. the ratio of total output to the stock of labor and capital changes by zero percent
  e. the ratio of total output to the stock of labor and capital increases

Question 8

Which of the following is false?
 a. The price elasticity of supply measures the sensitivity of the quantity supplied to the changes in the price of the good.
  b. The price elasticity of supply is defined at the percentage change in the quantity supplied divided by the percentage change in price.
  c. Goods with a supply elasticity that is greater than 1 are called relatively elastic in supply.
 d. When supply is inelastic, a 1 percent change in the price of a good will induce a more than 1 percent change in the quantity supplied.

Question 9

Below the equilibrium level of nominal interest rates, there is a _______ of money and money interest rates will tend to _____ as a result.
 a. Shortage; fall.
  b. Shortage; rise.
  c. Surplus, fall.
 d. Surplus; rise.

Question 10

The total factor productivity of an economy is the ratio of the economy's _____.
 a. total income to its total population
  b. output to its total stock of labor and capital
  c. stock of capital to its stock of labor
  d. total population to its total labor force
  e. total capital stock to its total population

Question 11

If 400 apple pies are sold at 4 per pie, but 500 apple pies are sold at 3 per pie, we know from the total revenue rule:
 a. that the demand for pies is elastic over that price range.
 b. that the demand for pies is inelastic over that price range.
  c. that the demand for pies is unit elastic over that price range.
  d. nothing about the elasticity of demand.

Question 12

When changes in the supply of money are implemented, it makes interest rates change in the _____ direction as the shift in the money supply curve and makes aggregate demand change in the _____ direction as the shift in the money supply curve.
 a. Same; same.
 b. Same; opposite.
 c. opposite; same.
 d. Opposite; opposite.