If the marginal product of labor is greater than the average product of labor, then the
A. marginal product must be increasing.
B. marginal product must be decreasing.
C. average product must be increasing.
D. average product must be decreasing.
Answer: C
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Two consequences of asymmetric information are adverse selection and moral hazard. An important distinction between the two is
A) adverse selection exists prior to the completion of a transaction while moral hazard occurs after the transaction is completed. B) moral hazard exists prior to the completion of a transaction while adverse selection occurs after the transaction is completed. C) moral hazard leads to an inefficient quantity while adverse selection leads to an efficient quantity. D) adverse selection leads to an inefficient quantity while moral hazard leads to an efficient quantity.
What is the national income identity for an open economy?
What will be an ideal response?
When prices are measured in terms of fixed (base-year) prices they are called ________ prices
A) nominal B) real C) inflated D) aggregate
Steve Forbes has run for president twice on a program of a "flat tax." Under a flat tax, there would be only one tax bracket for the federal income tax and most tax deductions and tax exemptions would be eliminated
Suppose that Forbes wins the 2016 presidential election. What would be the likely impact on the market for municipal bonds?