The formula for the multiplier overstates the real world multiplier when we take into account the impact of changes in GDP on imports, inflation, and the interest rate
a. true
b. false
a. true
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If workers are in the backward-bending section of their labor supply curves, than an increase in the income tax rate will
A) increase the tax revenue and increase the number of hours worked. B) increase the tax revenue and decrease the number of hours worked. C) decrease the tax revenue and increase the number of hours worked. D) decrease the tax revenue and decrease the number of hours worked.
Which of the following is considered to be the best method of production?
a. Capital-intensive method b. Least-cost method c. Labor-intensive method d. Scarce resource method
Economies of scale refer to:
A. the fact that large producers may be able to use more efficient technologies than smaller producers. B. public investments in highways, schools, utilities, and such. C. the reallocation of labor from less-productive to more-productive uses. D. the idea that proprietorships are less bureaucratic and therefore more efficient than corporations.
The Endangered Species Act has
A. saved all endangered species without affecting anyone. B. caused a loss of economic activities on some private land. C. had no impact on either the number of endangered species or other economic activities. D. further reduced the number of endangered species.