The principle of diminishing returns to capital states that if the amount of labour and other inputs employed is held constant, then the greater the amount of capital in use the:
A. less is produced
B. more production is wasted
C. less production is wasted
D. less an additional unit of capital adds to production
Answer: D. less an additional unit of capital adds to production
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Which of the following are goals of monetary policy?
A) maximizing the value of the dollar relative to other currencies, economic growth, and high employment B) price stability, economic growth, and high employment C) price stability, economic growth, and maximizing the value of the dollar relative to other currencies D) price stability, maximizing the value of the dollar relative to other currencies, and high employment
The basic problem portrayed by the traditional Phillips Curve is:
A. that a level of aggregate demand sufficiently high to result in full employment may also cause inflation. B. that changes in the composition of total labor demand tend to be deflationary. C. that unemployment rises at the same time the general price level is rising. D. the possibility that automation will increase the level of noncyclical unemployment.
If a firm wants to finance a new project, it can obtain financing by
A) using its retained earnings. B) issuing and selling new shares of stock. C) selling corporate bonds to the public. D) all of the above.
U.S. real GDP in 2007 was $13.25 trillion and U.S. real GDP in 2008 was $13.31 trillion. What was the economic growth rate of the United States during this period?
A) 18 percent B) -1.36 percent C) 0.45 percent D) 6.9 percent E) $1.8 trillion