An underproduction of goods occurs when there is _____
a. free riding
b. government production
c. holdout
d. eminent domain
a
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As real incomes grow, what happens to federal tax revenues as a share of the economy?
Country A and country B both increase their capital stock by one unit. Output in country A increases by 10 while output in country B increases by 8 . Other things the same, diminishing returns implies that country A is
a. richer than Country B. If Country A adds another unit of capital, output will increase by more than 10 units. b. richer than Country B. If Country A adds another unit of capital, output will increase by less than 10 units. c. poorer than Country B. If Country A adds another unit of capital, output will increase by more than 10 units. d. poorer than Country B. If Country A adds another unit of capital, output will increase by less than 10 units.
OPEC is a classic example of a kinked-demand curve oligopoly.
Answer the following statement true (T) or false (F)
If all firms pay an efficiency wage, then
A) there is no cost to shirking because the shirking worker can receive his high wage at another firm after being caught and fired. B) the macroeconomy would enjoy a prolonged period of near-zero unemployment. C) there is a cost to shirking because the efficiency wage is less than it would have been if only a few firms paid it. D) there is a cost to shirking because the shirking worker will spend a greater time unemployed after being caught and fired.