An increase in total factor productivity shifts the production function
A) upward and increases the marginal product of labor.
B) upward and decreases the marginal product of labor.
C) downward and increases the marginal product of labor.
D) downward and decreases the marginal product of labor.
A
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Gross investment is
A) the wear and tear on private investment. B) the total amount of new private investment purchases. C) what is left over from total new private investment after depreciation. D) the total amount of private investment purchases, whether new or previously existing.
A cooperative equilibrium results when firms
A) choose a strategy by random chance. B) choose the best strategy regardless of what other players do. C) choose the strategy that minimizes the payoff to other players. D) choose the strategy that maximizes the total game payoff.
Which economic concept is the closest to the saying, "There's no such thing as a free lunch"?
a. Specialization b. Unlimited wants c. Underutilization of resources d. Opportunity costs e. Overutilization of resources
If supply is upward-sloping and demand is downward sloping, what happens to the equilibrium real risk-free interest rate and quantity of real loanable funds per time period if there is an increase of the real money supply and an increase in the government's budget deficit?
a. The real risk-free interest rate falls and the quantity per time period rises. b. The real risk-free interest rate is uncertain and the quantity per time period rises. c. The real risk-free interest rate is rises and the quantity per time period is uncertain. d. The real risk-free interest rate does not change and the quantity per time period falls. e. The real risk-free interest rate is uncertain and the quantity per time period is uncertain.