Based on the relative size of factor payments, the most important resource in the U.S. economy is
A. capital.
B. land.
C. labor.
D. natural resources.
Answer: C
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_____ the externality generated by education, individuals have a _____ incentive to obtain an education for themselves
a. Because of; strong b. Despite; strong c. Because of; weak d. Despite; weak
When a firm's average revenue falls, the marginal revenue also falls and is less than the average revenue
a. True b. False Indicate whether the statement is true or false
If aggregate demand intersects aggregate supply in the horizontal range of the aggregate supply curve, then, other things equal, an increase in government spending will:
a. raise real GDP by the amount indicated by the government spending multiplier and leave the price level unchanged. b. lower real GDP by an amount equal to the increased spending and reduce inflation. c. raise the price level and leave real GDP unchanged. d. raise both real GDP and the price level by a multiple of the initial spending increase. e. have no effect on real GDP or the price level, because all private investment will be crowded out.
The law of supply and demand asserts that
a. demand curves and supply curves tend to shift to the right as time goes by. b. the price of a good will eventually rise in response to an excess demand for that good. c. when the supply curve for a good shifts, the demand curve for that good shifts in response. d. the equilibrium price of a good will be rising more often than it will be falling.