Ceteris paribus, when households spend less but do not supply of all their additional saving to the loanable funds market,
a. total spending will exceed below total income, satisfying Say's law.
b. total spending will drop below total income, violating Say's law.
c. total spending will drop below total income, thereby satisfying Say's law.
d. total spending will equal total income, violating Say's law.
e. this will contribute to an economic expansion.
B
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The poverty line is the income level
a. earned by a worker employed full-time at the minimum wage. b. below which a family is officially considered "poor." c. above which a family is not entitled to government assistance. d. that is the average for American families.
You have been hired by the No Hassle Collection Agency to provide economic advice. The owner of the agency tells you that No Hassle's only variable input is the number of collection agents. The hourly wage for collection agents is $30.00. The marginal revenue product curve for collection agents reaches its maximum at five workers with a marginal revenue product of $34.00. What advice would you give this firm?
A. Hire collection agents until the marginal revenue product is equal to the wage-which will occur when more than five agents are employed. B. Hire five collection so as to maximize profits. C. Decrease the wage rate paid to collection agents so that their marginal revenue product will decrease. D. Shut down immediately, as the firm is not able to cover all of its variable costs.
The Internet may reduce frictional unemployment because it __________
Fill in the blank(s) with correct word
What primary function is money serving when you keep it in a bank account until you need it to purchase a product?
A. A double coincidence of wants. B. A medium of exchange. C. A unit of account. D. A store of value.