Diminishing marginal returns to labor occur because
A) after a while it is hard to find a good worker.
B) the capital resources used by the firm are fixed in the short run.
C) workers become more efficient over time.
D) larger companies are less efficient.
B
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Regressive income taxes are
A) an important form of income redistribution. B) present when the average tax rate decreases as income decreases. C) present when the average tax rate decreases as income increases. D) Both answers A and B are correct.
The ADS Business Conditions Index is a
A) leading index based on variables released with different frequencies. B) coincident index based on variables released with different frequencies. C) leading index based on 85 monthly variables. D) coincident index based on 85 monthly variables.
If price is initially above the equilibrium level
A) the supply curve will shift rightward. B) the supply curve will shift leftward. C) excess supply exists. D) all firms can sell as much as they want.
If the aggregate supply curve is steep,
a. increased aggregate demand will not lead to higher prices. b. greater demand for labor will not cause significant wage increases. c. business firms are probably producing near capacity. d. All of the above are correct.