Zachary spends his day studying for a total of four hours and exercising for one hour. Using the concept of utility to explain his choices, we can say
A. the marginal utility of studying for a fifth hour will be negative.
B. the marginal utility from studying for a fifth hour is less than the marginal utility from the first hour of exercise.
C. the total utility gained from exercising for one hour is greater than the total utility from studying for four hours.
D. the marginal utility of exercising for the first hour was greater than the marginal utility of studying for the first hour.
Answer: B
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________ decreases a firm's capital stock, and ________ increases its capital stock
A) Saving; depreciation B) Depreciation; investment C) Time; depreciation D) Saving; investment E) Investment; saving
Other things remaining the same, if the expected future exchange rate rises, the demand curve for U.S. dollars shifts ________ and the supply curve of U.S. dollars shifts ________
A) rightward; rightward B) rightward; leftward C) leftward; rightward D) leftward; leftward
When taxpayers pay more in taxes because of inflation even when the nominal tax structure remains the same, this is called _____
a. indexation b. bracket creep c. tax expenditure d. nominal rigidity
Which of the following propositions would a proponent of supply-side economics be most likely to stress?
a. Higher marginal tax rates will lead to a reduction in the budget deficit and lower interest rates, because they expand government revenues. b. Higher marginal tax rates promote economic inefficiency and thereby retard aggregate output, because they encourage investors to undertake low-productivity projects with substantial tax-shelter benefits. c. Income redistribution payments will exert little impact on real aggregate supply, since they do not consume resources directly. d. A tax reduction will increase the disposable income of households. Thus the primary impact of a tax reduction on aggregate supply will stem from the influence of the tax change on the size of the budget deficit or surplus.