Refer to the figure below. 
If both firms offer reduced rates, each earns ________, and if both firms keep their rates high, each earns ________.
A. 500; 300
B. 300; 500
C. 50; 300
D. 300; 50
Answer: C
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Labor productivity rises
A) if the amount of capital per worker increases. B) in the absence of technological progress. C) if firms invest in hiring more workers rather than buying more capital. D) if the amount of capital per worker decreases.
The ratio of the change in GDP to an initial change in aggregate expenditures (AE) is the:
a. spending multiplier. b. permanent income rate. c. marginal expenditure rate. d. marginal propensity to consume.
If Doug drives his car into a tree, reducing the value of the car from $15,000 to $14,000, then Doug's wealth:
A. decreases by $1,000. B. does not change. C. increases by $1,000. D. decreases by $15,000.
Public employees (more frequently than private employees) tend to have their retirements in
A. private savings plans. B. defined contribution programs. C. defined benefit pension programs. D. Ponzi schemes.