Which of the following is not a characteristic of capitalism?
a. Private ownership of the factors of production.
b. Businesses make their own product and price decisions.
c. Public ownership of the factors of production.
d. Decentralized decision-making using markets.
c
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Which of the following statements is true?
A) An increase in potential GDP increases aggregate supply and shifts the AS curve leftward. B) A decrease in potential GDP decreases aggregate supply and shifts the AS curve leftward. C) An increase in the money wage rate shifts the AS curve rightward. D) A fall in the price level shifts the AS curve leftward. E) An increase in the money wage rate increases potential GDP.
According to the benefit principle, the Social Security payroll tax is _____. According the ability-to-pay principle, the Social Security payroll tax is _____
a. equitable; equitable b. equitable; inequitable c. inequitable; equitable d. inequitable; inequitable
Which of the following is a reason that some economists do not agree with the concept of a labor-leisure tradeoff?
a. Wages are paid in dollars and leisure is measured in time, hence there is no way to compare the two. b. On a day-to-day basis, most jobs do not have the flexibility to allow people to weigh the benefits and costs to determine how much they should work that day. c. In the long-run, the supply of labor hours is perfectly inelastic. d. An increase in the wage rate always leads to an increase in the supply of labor hours, therefore the workers do not think of choosing leisure over labor. e. Some people do not work at all, so there is no labor-leisure tradeoff for those individuals.
The classical model assumes that
a. the supply of labor is fixed b. the stock of capital and technology are fixed c. the stock of capital and technology grows at a constant rate d. the supply of labor grows at a constant rate e. the supply of labor grows at an increasing rate.