The rental price of capital is the:
A. equilibrium wage.
B. interest paid on loans.
C. amount producers pay to use a factor of production.
D. value of the expected flow of income gained from ownership.
Answer: C
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A recent study has revealed that the unemployment rate in Eduland has been increasing over the last few years. What will be the impact of an increase in government spending in Eduland?
What will be an ideal response?
To achieve a $500 billion decrease in AD, if the MPC is 0.8, what decrease in government purchases would be called for?
a. $100 billion b. $400 billion c. $500 billion d. $625 billion
Farm programs such as those of the United States and the European Union:
A. encourage the United States and the European Union to use tariffs and quotas to restrict agricultural imports. B. cause U.S. and EU farmers to produce less than domestic consumers want to purchase. C. increase world market prices for agricultural products. D. raise farm output in developing nations.
Since the Social Security system began in 1935, the number of workers per retiree has
A) stayed roughly the same. B) continually risen. C) continually declined. D) risen and declined with different generations.