One of the factors contributing to the fact that labor productivity is higher in the U.S. than in the People's Republic of China is
A) China's larger stock of capital.
B) the higher capital/labor ratio in China.
C) the higher capital/labor ratio in the U.S.
D) China's smaller stock of fossil fuels.
E) the fact that much labor in the U.S. is in management.
C
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All else equal, an increase in net exports accompanied by a decrease in expected future profits would definitely result in
A) an increase in the equilibrium real interest rate. B) a decrease in the equilibrium real interest rate. C) an increase in the equilibrium level of saving and investment. D) a decrease in the equilibrium level of saving and investment.
A stock mutual fund is generally
A) less risky than buying individual stocks. B) more risky than buying individual stocks. C) just as risky as buying individual stocks. D) a way for the rich to avoid taxes.
There are different kinds of income discussed in the book. Which one of the following does not belong
a. Discretionary b. Disposable c. Gross d. Aspirational
An effluent fee is imposed on a steel firm to reduce the amount of waste materials that it dumps in a river. Use the following two statements to answer this question:
I. The more easily factors of production can be substituted for one another (for example, capital can be used to reduce waste water), the more effective the fee will be in reducing effluent. II. The greater the degree of substitution of capital for waste water, the less the firm will have to pay in effluent fees. A) Both I and II are true. B) I is true, and II is false. C) I is false, and II is true. D) Both I and II are false.