An increase in the supply of capital, which is a complement to labor, will lead to
A) an increase in the quantity of labor demanded. B) a decrease in the demand for labor.
C) an increase in the demand for labor. D) a decrease in the quantity of labor demanded.
C
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Which of the following is not a primary cause of business cycle fluctuations, according to real business cycle theory?
A) A change in the production function B) A change in the size of the labor force C) A change in the money supply D) A change in the real quantity of government purchases
The marginal cost of providing another viewer with access to HBO is zero. Since only people who pay for HBO can watch it:
A. HBO will not be profitable in the long run. B. more than the socially optimal number of people will have access HBO. C. access to HBO is nonexcludable. D. fewer than the socially optimal number of people will have access to HBO.
Under a progressive income tax, as income increases
A. taxes increase at the same proportional rate as income. B. taxes decrease as a share of income. C. absolute tax payments increase, but the average tax rate declines. D. taxes increase as a percent of income.
The concept that a student is enjoying the benefits of police protection even though she does pays taxes is called
A. the principle of anti-trust. B. the free-rider problem. C. the negative externality principle. D. the principle of rival consumption.