"Complete" crowding out of fiscal policy occurs when the
A) LM curve is horizontal.
B) LM curve is upward-sloping.
C) LM curve is vertical.
D) IS curve is vertical.
C
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Recall the Application. If country A has a lower overall income tax rate than country B, and labor can freely and easily move between the two countries, ________ in country A will tend to ________
A) labor demand; decrease B) labor supply; decrease C) labor demand; increase D) labor supply; increase
One of the most famous cartels is OPEC
a. True b. False Indicate whether the statement is true or false
Figure 7.5
The consumer must decide how to split $20 between spending and saving.Refer to Figure 7.5. If the consumer uses cognition to offset present bias, he/she will maximize utility by ________ consumption and ________ saving.
A. increasing; increasing B. increasing; decreasing C. decreasing; increasing D. decreasing; decreasing
In the employment of any resource, a firm should
A) equate marginal revenue product with the cost of the additional resource. B) hire each input unit that adds more to revenue than it adds to costs. C) hire each input unit provided its marginal physical product is greater than zero. D) A and B are both correct.