(Table: Production and Prices in Two Industries) Using the Information

question 54

Multiple Choice

(Table: Production and Prices in Two Industries) Using the information from the table, we can expect which of the following to happen in the economy?

• A) Labor will migrate from the agriculture to the manufacturing sector.
• B) Labor will migrate from the manufacturing to the agriculture sector.
• C) The marginal product of labor in the agriculture sector will increase.
• D) The marginal product of labor in the manufacturing sector will decrease.

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Definitions:

Coupon Rate

The interest rate on a bond paid by the issuer, expressed as a percentage of the bond's face value.

Coupon Bond

A type of bond that pays the holder a fixed interest rate (coupon) over the bond's life, with the principal repaid at maturity.

Interest-Rate Risk

The risk that an investment's value will change due to a change in the absolute level of interest rates.