The optimum quantity of an input occurs when
a. diminishing returns set in.
b. marginal revenue product equals input price.
c. marginal physical product equals input price.
d. marginal revenue product equals output price.
b
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The most liquid asset(s) of all is (are)
a. cash in the hands of the public b. cash in the hands of banks c. demand deposits held by households and businesses at commercial banks d. travelers' checks e. credit cards
Compensating wage differentials explain some income differences
a. True b. False Indicate whether the statement is true or false
Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
Refer to the information provided in Figure 26.6 below to answer the question(s) that follow.
Figure 26.6Refer to Figure 26.6. Suppose the equilibrium price level is 110. An increase in the supply of oil would probably
A. decrease both the equilibrium output and the price level. B. increase the equilibrium output and decrease the price level. C. decrease the equilibrium output and increase the price level. D. increase both the equilibrium output and the price level.