Assume that one laborer produces 6 units of output, two laborers produce 14 units, three laborers 22 units, four laborers 24 units, and five laborers 25 units. Diminishing returns set in when the firm hires:
a. the first laborer.
b. the second laborer.
c. the third laborer.
d. the fourth laborer.
e. the fifth laborer.
d
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Where Y is GDP, C is consumption, I is investment, G is government purchases, T is net taxes, and there is no international trade, public saving equals:
A. Y - T - C. B. T - G. C. Y +T - G. D. Y - C - T.
The largest liability on the balance sheet of most banks is its
A) holdings of securities. B) loans. C) checking account and savings account deposits of its customers. D) deposits with the Federal Reserve. E) vault cash.
Speculation in exchange markets is often thought of as conducive to wild fluctuations in exchange rates. In practice it appears that speculators
a. have destabilized several currencies that were at sustainable equilibrium levels. b. have no effect in fixed rate systems. c. in fact tend to stabilize exchange rates rather than destabilize them. d. All of the above are correct.
Assume the real U.S. GDP in 1929 was $942 billion and the U.S. population was 122 million, and the real U.S. GDP in 1930 was $858 billion and the U.S. population was 123 million. From 1929 to 1930, the per capita real GDP
A. Decreased. B. Remained unchanged. C. Increased. D. Cannot be determined from the information given.