What is the relationship between marginal product and average product?
What will be an ideal response?
When marginal product is greater than average product, average product rises. When marginal product is lower than average product, average product falls. When marginal product is equal to average product, average product is at its maximum.
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High-powered money is
A) total deposits received by banks within the system. B) reserves held by banks to meet withdrawals. C) deposits divided by the reserve holding ratio. D) the reserve holding ratio divided by the level of deposits.
A vertical IS curve comes from the assumption that changes in the interest rate do NOT affect
A) money demand. B) the money supply. C) autonomous planned spending. D) the LM curve.
Many people favor stronger gun control as a method of reducing murder rates. Others argue that criminals will get guns despite stronger laws restricting them. Assume those seeking gun control recognize this argument but they still push for gun control. They most likely believe that
A. criminals fall prey to the Weber-Fechner law. B. people are rational but are subject to the self control pitfall in moments of high passion. C. murders are usually premeditated rational acts based on cost-benefit analysis. D. the sophomore jinx does not apply to murderers.
The _____ marks the low point of a business cycle.
Fill in the blank(s) with the appropriate word(s).