Real GDP can increase either because the quantity of labor increases or because labor productivity increases. What is the effect on the standard of living if real GDP increases because
a. the quantity of labor increases?
b. labor productivity increases?
a. An increase in real GDP because the quantity of labor increases has no effect on the standard of living.
b. An increase in real GDP because labor productivity increases boosts the nation's standard of living.
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The Federal Reserve discount rate is the rate of interest charged on loans from ________ to ________.
A. the U.S. Treasury; commercial banks B. commercial banks; the Federal Reserve C. the Federal Reserve; commercial banks D. the Federal Reserve; the U.S. Treasury
An open outcry auction is an auction where ________
A) bids are placed privately B) public goods are sold C) bidders know about each other's bids D) free goods are distributed among the general public
Between two indifference curves, the one on the right indicates:
A) the same level of utility as the one on the left. B) the same bundle of goods as the one on the left. C) a higher level of utility than the one on the left. D) a lower level of consumer income than the one on the left.
The marginal tax rate is:
A. the difference between the total tax rate and the average tax rate. B. the percentage of total income paid as taxes. C. change in taxes/change in taxable income. D. total taxes/total taxable income.