Which of the following is true?
What will be an ideal response?
Growth of output is necessary for the growth of income.
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The money supply will increase by a multiple of the increase in bank reserves created by the central bank unless:
A. banks' desired reserve/deposit ratio is 0.20. B. there is fractional reserve banking. C. there is 100 percent reserve banking. D. the public holds no currency.
Laborland has 1 million workers. Suppose 50,000 workers migrate from a neighboring country to join Laborland's work force. Which of the following will happen in this case if Laborland's capital stock remains unchanged?
A) The country's income per worker will increase. B) The total efficiency units of labor in the economy will decrease. C) The relationship between output and capital stock becomes negative. D) The marginal contribution of labor to Laborland's output will fall.
If a firm wants to maximize profits, it should hire workers up to the point at which
A) total factor cost = total revenue. B) marginal factor cost = marginal revenue product. C) marginal utility = marginal cost. D) total social benefit = total social costs.
An income distribution in which all households receive exactly the same income is referred to as a(n)
a. just distribution of income. b. proportional distribution of income. c. equal distribution of income. d. equitable distribution of income.