The exchange efficiency condition holds:
A. if every pair of individuals has inverse marginal rates of substitution for every pair of goods.
B. if every pair of individuals shares the same marginal rate of substitution for every pair of goods.
C. if every pair of individuals consumes the same quantities of every pair of goods.
D. if every pair of individuals have the same level of utility.
B. if every pair of individuals shares the same marginal rate of substitution for every pair of goods.
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Which of the following is included in "compensation of employees" part of the income approach to measuring GDP? I. Wages and salaries. II. Pension fund contributions. III. Social Security contributions
A) I only B) I and II C) I and III D) I, II and III
What type of relationship do business taxes have with respect to Investment spending?
A. Negative B. Positive C. Secondary D. Constant
With a downsloping demand curve and an upsloping supply curve for a product, placing an excise tax on this product will:
A. increase equilibrium price and quantity. B. decrease equilibrium price and quantity. C. decrease equilibrium price and increase equilibrium quantity. D. increase equilibrium price and decrease equilibrium quantity.
Suppose there is a decrease in the saving rate. Explain what effect this decrease in the saving rate will have on the rate of growth of output per worker
What will be an ideal response?