When more workers are hired, the firm's output expands at an increasing rate only
a. when the law of diminishing returns is operative
b. under conditions of noncompeting labor markets
c. if each worker's MPP is positive
d. when technology is improved
e. when the gains from specialization of labor outweigh all other factors affecting labor productivity
E
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A tax imposed on buyers raises the price of the good more than would the same tax if it was imposed on sellers
Indicate whether the statement is true or false
Which of the following is not a characteristic of capitalism?
a. Private ownership of resources. b. Decentralized decision-making using markets. c. Representative democracy. d. Consumer sovereignty.
Which of the following are not included in the M1 definition of the money supply?
a. cash and currency b. checkable deposits c. money market deposit accounts d. All of the above are included.
Assuming there is no government or foreign sector, if the multiplier is 10, the MPC is
A. 0.9. B. 0.8. C. 0.5. D. 0.1.