In destination countries, as immigration occurs and more labor is employed, in the short run, wages fall and the marginal products of land and capital (fixed resources):
a. are unaffected.
b. both rise.
c. both fall.
d. rise for one and fall for the other.
Ans: b. both rise.
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If the Fed engages in an open market sale of U.S. government securities, what is the likely impact of this monetary policy move?
a. The supply of money and the interest rate will both increase. b. The supply of money will increase but the interest rate will decrease. c. The supply of money will decrease but the interest rate will increase. d. The supply of money and the interest rate will both decrease.
Social Security is a pure transfer program because
A) it transfers funds from current workers to the poor. B) the government transfers funds from middle-income workers to welfare recipients. C) current payroll taxes are used to pay the eligible retirees. D) the government subsidizes the medical bill of the poor.
A monopolist
A. faces an upward sloping demand curve. B. faces a vertical demand curve. C. is a price searcher. D. is a price taker.
In order to help assure that all relevant factors will be considered, the capital-expenditure selection process should include the following steps except:
a. generating alternative capital-investment project proposals b. estimating cash flows for the project proposals c. reviewing the investment projects after they have been implemented d. allocate manpower to the various divisions within the firm e. a and d