If the MRP is less than the wage, the firm should hire more labor
Indicate whether the statement is true or false
F
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About 6% of annual total federal government expenditures goes toward paying interest on the federal debt
Indicate whether the statement is true or false
The inflation that occurred during the Civil War (1861–1865)
(a) was a means of expropriating resources to fight the war. (b) was a form of taxation to provide resources to fight the war. (c) represented a decrease in the purchasing power of money. (d) was true for all of the above.
According to supply-side economists, lower marginal tax rates will not necessarily lead to lower tax revenues because
A) the crowding out effect does not apply to taxes. B) lower tax rates have no effect on the opportunity cost of labor. C) the aggregate supply curve will shift inward to the left if the tax rates are lowered. D) the lower marginal tax rates will be applied to a growing tax base due to economic growth.
The general message of the folk theorems is:
a. Nash equilibria may not be sustainable over many replications of a game. b. payoffs that are unambiguously preferred to Nash equilibria may be sustainable over many replications of a game. c. credible threats may inhibit the achievement of mutually beneficial outcomes over many replications of a game. d. just plain folk play the best games.