If production displays increasing marginal returns, then
A) the firm must be adding new capital to keep boosting productivity.
B) each new worker hired adds more to output than previous hires.
C) total product reaches a maximum sooner than if production displayed decreasing returns.
D) total product rises by a constant amount throughout.
B
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The EITC is a
A. tax credit to working poor families. B. provision in the minimum wage law that allows waitresses to be paid less because they get tips. C. welfare program for which only nonworking families are eligible. D. provision in the minimum wage law that allows for a lower training wage.
The multiplier effect
A) explains what causes an expansion. B) has no impact on equilibrium expenditure. C) reinforces the negative effects of any reduction in spending. D) explains what causes a recession. E) explains how the economy recovers from a recession.
The benefit that Jack receives from consuming a pack of french fries is 10 utils. He expects a future health cost of eating french fries at 20 utils
If Jack discounts delayed utils with a weight of 1/4, should he consume french fries? Explain your answer.
Suppose that expected profit decreases. This change means
A) the demand curve for loanable funds shifts leftward and the real interest rate falls. B) the supply curve for loanable funds shifts rightward and the nominal interest rate rises. C) there is a movement down along the demand curve for loanable funds. D) the real interest rate rises as saving increases.