An increase in the reserve ratio ______ the size of the monetary multiplier.
Fill in the blank(s) with the appropriate word(s).
decreases
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Answer the following statement(s) true (T) or false (F)
1. Inputs owned by the firm are included when calculating its costs. 2. If marginal cost rises when output is increased, then the average cost of production is also rising. 3. When labor is the only variable input in the short run, average variable cost equals the wage rate times the average product of labor. 4. The marginal cost curve crosses average variable cost at the bottom of the average cost U. 5. Average Variable Cost can always be expressed as the ratio of the price of labor to the Average Product of Labor.
Which of the following observations would be valid if the Gini coefficient is equal to zero?
a. Perfect income inequality b. Greater degree of income inequality c. Lorenz curve overlaps the line of perfect income equality d. Unequal distribution of income
Which of the following is subtracted from net national product to arrive at national income?
a. net income of foreigners b. depreciation c. indirect business taxes d. transfer payments
If a poor family has three children in public school and a rich family has two children in private school, the benefits principle would suggest that
a. the poor family should pay more in taxes to pay for public education than the rich family. b. the rich family should pay more in taxes to pay for public education than the poor family. c. the benefits of private school exceed those of public school. d. public schools should be financed by property taxes.