In the long run,
a. fiscal policy has no effect on the labor force participation rate.
b. lower tax rates can lower the labor force participation rate.
c. less generous transfer payments can raise the labor force participation rate.
d. higher tax rates can raise the labor force participation rate.
e. None of the above
C
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If the marginal utility of a product exceeds its MC, we would want, on efficiency grounds, to
A. increase production. B. decrease production. C. leave production constant. D. One cannot tell without knowing the price.
When economists speak of the demand for money, they refer to the amount of money people would like to hold
a. given that it can only be printed slowly b. in the best of all possible worlds c. in their bank accounts rather than their wallets d. at each interest rate e. rather than spend
If interest rates in the U.S. increases relative to interest rates in Europe:
A. the price of U.S. assets should increase. B. the supply of euros on the foreign exchange market would increase. C. the demand for dollars on the foreign exchange market would increase. D. all of the answers given are correct.
Varying plant sizes are shown graphically by
A. economies of scale. B. diseconomies of scale. C. the long-run average costs curve. D. diminishing returns. E. negative returns.