Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point E to Point B. This could be explained by
A. a change in society's preferences for hybrid cars versus motorcycles.
B. an increase in economic growth.
C. an increase in unemployment.
D. a reduction in unemployment.
Answer: A
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When the Fed is ________ it is ________
A) adjusting the amount of money in circulation; issuing government bonds B) issuing government bonds; conducting monetary policy C) adjusting the amount of money in circulation; conducting monetary policy D) regulating the nation's financial institutions; conducting monetary policy
Does the law of diminishing returns apply to capital as well as labor? Explain why or why not
What will be an ideal response?
This year Terrance earned $3,000 more than last year. As a result, he received $2,500 less in government transfers. Therefore, Terrance's implicit marginal tax rate is about
a. 16 percent b. 25 percent c. 66 percent d. 83 percent
As a firm hires more workers, holding the amounts of capital and other inputs constant,
A. output increases at a decreasing rate. B. output increases at an increasing rate. C. output increases at a constant rate. D. output increases, but we can't be certain whether output increases at an increasing or a decreasing rate.