Which of the following is most likely to occur when the marginal revenue product of capital increases?
a. The price of the product in which capital is used as a resource decreases.
b. The equilibrium rental rate for capital increases
c. The demand for labor as a resource increases.
d. The demand curve for capital shifts to the left.
b
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Sonia has a BAin art history, and is currently working full-time as a waitress. The Bureau of Labor Statistics would count Sonia as:
A. employed. B. underemployed. C. unemployed. D. a discouraged worker.
Kim is paid $50,000 per year, and pays an annual income tax of 10 percent. Due to an inflation rate of 10 percent, her pay increases to $55,000, which puts her in a higher tax bracket where she must pay 20 percent. Kim has experienced:
A. bracket costs. B. the deflationary cost of tax distortion. C. an increase in her purchasing power. D. the inflationary cost of tax distortion.
Political institutions are more likely to allow and encourage the emergence of good economic institutions and policies when
a. the top government executives have enough power to impose good economic arrangements on the nation. b. constitutional constraints prevent laws and regulations that weaken the rights of property owners, curtail voluntary exchange, and provide for decentralization of government. c. the elected executive and legislative branches have fewer constraints on what they can do, leaving them free to innovate and improve economic institutions. d. well organized interest groups exert a powerful influence on the political process.
When box office receipts are not corrected for inflation, the most popular movie of all time is
a. Star Wars: The Force Awakens. b. Avatar. c. Gone With the Wind. d. The Dark Knight.