For an economy to experience both economic growth and inflation at the same time
A. the aggregate demand curve must shift to the left.
B. the aggregate supply curve must shift to the right.
C. the aggregate supply curve must shift to the left.
D. the aggregate demand curve must shift to the right.
Answer: D
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Nicole is indifferent between option A, which gives her $20,000 for sure, and option B, which gives her $10,000 with probability 0.5 or $32,000 with probability 0.5. Nicole's cost of risk for option B is
A) zero. B) $1,000. C) $2,000. D) $20,000.
In designing a tax system, policymakers have two objectives that are often conflicting. They are
a. maximizing revenue and minimizing costs to taxpayers. b. efficiency and minimizing costs to taxpayers. c. efficiency and equity. d. maximizing revenue and reducing the national debt.
Which of the following is true?
a. Kremer argued that with greater population, society would generate more ideas so that growth of real GDP per person could continue. Malthus argued that increasing population would outstrip agricultural production. b. Kremer argued that increases in population would reduce the amount of human and physical capital per worker so that eventually the standard of living would decline. Malthus argued that increases in technology would allow increased output growth so that even with population growth, society would enjoy a higher standard of living. c. Malthus argued that with greater population, society would generate more ideas so that growth of real GDP per person could continue. Kremer argued that increasing population would outstrip agricultural production. d. Malthus argued that increases in population would reduce the amount of human and physical capital per worker so that eventually the standard of living would decline. Kremer argued that increases in technology would allow increased output growth so that even with population growth, society would enjoy a higher standard of living.
If marginal product is decreasing, then it must be the case that
A. average product is greater than marginal product. B. average product is less than marginal product. C. average product is decreasing. D. both a and c E. none of the above.