Regardless of how much the government spends on public programs, as long is it collects in taxes what it spends, the budget is
a. fiscally neutral
b. inflationary
c. contractionary
d. recessionary
e. balanced
E
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All of the following increase labor productivity except _________
A. the accumulation of skill and knowledge B. an increase in capital per hour of labor C. an increase in consumption D. the employment of a new technology
Assume that production of a good imposes external costs on others. The equilibrium price will be ____ and the equilibrium quantity ____ for efficient resource allocation
a. too high; too high. b. too high; too low. c. too low; too high. d. too low, too low.
Marginal product refers to ______, and marginal revenue product refers to______.
a. labor; the value of economic and accounting profits b. a change in output; revenue gained from that change c. capital; income gained through investments in capital d. derived demand for labor; an increase in profitability
The public sector includes state and local governments, as well as the federal government.
Answer the following statement true (T) or false (F)