Income transfers become part of aggregate demand as soon as they occur.
Answer the following statement true (T) or false (F)
False
Income transfers do not become part of aggregate demand until the transfer recipients decide to spend that income.
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An increase in the rate of economic growth curve could be caused by all of the following except
A. a national tax that encourages all employers to provide more training and education for employees which leads to an across-the-board upgrade of the skill level of the nation's workforce. B. a movement along the production possibilities curve so that the society produces more consumer goods and less capital goods. C. an increase in immigration that increases the country's labor force by 20 percent. D. an increase in research and development spending for space technology that improves the quality of the nation's capital stock.
Which of the following is NOT a feature of a monopolistically competitive market?
A) numerous buyers and sellers B) differentiated products C) advertising D) a homogeneous product
A firm that fills its vacancies in the upper levels of the hierarchy with its own employees:
a. avoids opportunistic behavior by employees. b. uses an internal labor market. c. avoids the difficult tasks of measuring and comparing the productivities of individual workers. d. pays them according to their performance rather than seniority.
The behavior of the perfectly competitive firm: a. theoretically leads to an inefficient allocation of resources
b. maximizes the benefits to consumers, given the resources available to the economy. c. reduces output in order to raise prices in the short-term. d. results in excess capacity and inefficiency.