Japan appeared to have entered a liquidity trap at the turn of the century because
a) inflation made currency holdings virtually worthless
b) the central bank pushed nominal interest rates so high than investment stagnated
c) consumer spending rose dramatically, depleting savings
d) deflation pushed real interest rates up to levels that the central bank could not correct
e) long-term investments depleted the economy of cash
d) deflation pushed real interest rates up to levels that the central bank could not correct
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Refer to the above table. What does the marginal product equal when the quantity of labor goes from 1 to 2?
a. 26 b. 92 c. 23 d. 46
________ is the human resource that organizes labor, land, and capital
A) Human capital B) Human skill C) A gift of nature D) Entrepreneurship E) Profit
Sam Voter prefers Jack to Rob, Rob to Mark, and Jack to Mark. Sam's preferences:
A. are transitive. B. indicate that he is a liberal. C. are not complete. D. are not consistent with our assumptions about consumer behavior.
If a firm uses only capital and labor as inputs, then what should the firm do at a given rate of production if the marginal physical product of labor per last dollar spent is lower than the marginal physical product of capital per last dollar spent?
A) The firm should increase both the quantity of capital and the quantity of labor. B) The firm should decrease both the quantity of capital and the quantity of labor. C) The firm should increase the quantity of capital and reduce the quantity of labor. D) The firm should decrease the quantity of capital and increase the quantity of labor.