Capital is appropriately classified as a
a. flow.
b. process.
c. stock.
d. growth rate.
c
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Four stores have a problem with theft and security is a public good. Let S stand for the number of person-hours of security patrols per week. The marginal benefit of security patrols to each of the stores is given by the formula MB = 200 - 2S. Patrols cost $20 per hour. What is the socially efficient level of security?
A. 90 person-hours of patrols per week B. 100 person-hours of patrols per week C. 92.5 person-hours of patrols per week D. 97.5 person-hours of patrols per week
A consumer may increase her saving by
A) working more hours and consuming more goods in the present period. B) working more hours and consuming fewer goods in the present period. C) working fewer hours and consuming more goods in the present period. D) working fewer hours and consuming fewer goods in the present period.
Hanak Products, a perfectly competitive firm, is experiencing profitability. Given this information, what will Hanak Products do?
a. In the short run, the firm will improve product quality. b. In the long run, the firm will create quality controls. c. In the short run, the firm will reduce its staff size. d. In the long run, the firm will increase production.
Answer the following statements true (T) or false (F)
1) Permanent tax reductions are more likely to be expansionary than temporary tax reductions. 2) As measured by the cyclically adjusted budget, the U.S. government engaged in a contractionary fiscal policy in 2005 and 2006. 3) Financing wartime expenditures by increasing internally held public debt permits a nation to defer a part of the economic cost of war. 4) It is more meaningful economically to measure the public debt relative to the GDP than to measure it in absolute terms.