Imposing an employment tax leads to
A) a decreased supply of labor. B) more employment.
C) decreased potential output in the economy. D) greater demand for labor.
C
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For an economy starting at full employment real GDP, an increase in autonomous expenditure results in a(n)
A. increase in full-employment output. B. decrease in full-employment output. C. recessionary output gap. D. inflationary output gap.
Indifference curves that are farther from the origin are preferable to ones that are closer to the origin
a. True b. False Indicate whether the statement is true or false
A speculative attack:
A. can occur with any currency. B. can occur to currencies with floating exchange rates. C. can occur to currencies with fixed exchange rates. D. are illegal and no longer occur.
Refer to Table 8.1. Assume the wage rate is $10 and the firm has $1,000 in unavoidable fixed cost. What is the marginal cost of the 83rd unit of output?
A. $0.50
B. $0.56
C. $1.00
D. $1.43