The general rule governing the hiring of workers is to:
A. maximize the marginal product of labor.
B. equate marginal labor costs to marginal labor benefits.
C. equate total labor costs to total labor benefits.
D. minimize average labor costs.
Answer: B
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When a(n) ________ in investment increases consumption and real GDP, part of the increase in expenditure is on ________, not ________ goods and services
A) increase; exports; U.S.-produced B) decrease; exports ; U.S.-produced C) increase; imports; U.S.-produced D) increase; imports; foreign-produced E) decrease; imports; U.S.-produced
An economic naturalist is someone who:
A. applies economic insights to understand everyday life. B. studies the process of natural selection in a cost-benefit framework. C. has an innate talent for using economic concepts. D. uses economic arguments to protect the environment.
Which of the following equals demand in a closed economy?
A) C + I + G + X B) C + I + G + X - IM C) C + I + G + IM - X D) none of the above
Other things equal, the interest rate on a loan will be larger:
A. The less the risk involved B. The larger the amount of the loan C. The longer the length of the loan D. If loan interest is exempt from taxation