Diminishing marginal product exists when the production function becomes flatter as inputs increase
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following bond ratings by Moody's Investors Service would NOT be considered to be below investment grade?
A) Baa B) Ba C) B D) All of these ratings are considered below investment grade.
Suppose the federal budget surplus for the year was $350 billion and the economy was in an economic expansion
If the economy had been at potential GDP, it is estimated that tax revenue would have been $140 billion lower and government spending on transfer payments would have been $50 billion higher. Using these estimates, the cyclically adjusted budget A) deficit was $440 billion. B) deficit was $260 billion. C) surplus was $160 billion. D) surplus was $540 billion.
Which of the following best describes the "guiding function" of price?
A) In response to a surplus or shortage in two markets, price serves as a "guiding function" by decreasing in one market and increasing in the other market in the short run. B) The guiding function of price is the movement of resources into or out of markets in response to a change in the equilibrium price of a good or service. C) The guiding function of price occurs when the market price changes to eliminate the imbalance between supply and demand caused by a shortage or surplus at the original price. D) The guiding function usually occurs in the short run while the rationing function usually occurs in the long run.
Other things the same, an increase in the interest rate
a. would shift the demand for loanable funds to the right. b. would shift the demand for loanable funds to the left. c. would increase the quantity of loanable funds demanded. d. would decrease the quantity of loanable funds demanded.