The situation pictured in Figure 6.3
A) is one of increasing marginal returns to labor.
B) is one of increasing marginal returns to capital.
C) is not consistent with diminishing marginal product of labor or capital.
D) shows constant returns to scale.
E) shows diminishing marginal products of labor and capital.
E
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Social Security tax is deducted from your paycheck. In the figure above, this will be shown as
A) taxes flowing from households to firms. B) taxes flowing from households to governments. C) wages flowing from firms to governments. D) wages flowing from firms to households. E) taxes flowing from firms to governments.
The amount of unemployment that policymakers should not worry about because it constitutes no social problem is
A) 2 percent of the labor force. B) 4 percent of the labor force. C) not any single amount that can be clearly measured. D) the amount that can exist without causing a recession. E) the amount that is due to people's choices among available alternatives.
A company's annual payment to stockholders is called the
a. dividend. b. kickback. c. plowback. d. retained earnings.
Government goods are delivered "free," which means that they are costless.
Answer the following statement true (T) or false (F)