Experience ratings provide firms with an incentive NOT to:
A. hire older workers.
B. invest in health and safety programs.
C. hire disabled workers.
D. both hire older workers and hire disabled workers
Answer: D
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If the MPS = 0.2, the multiplier would be
A) 0.5. B) 1. C) 2. D) 5.
Suppose the economy is initially at equilibrium, in which total planned real expenditures equals real GDP. Which of the following will occur if there is an increase in autonomous investment?
A) Inventories will decrease immediately and production of goods and services will increase until real GDP catches up with total planned real expenditures. B) Inventories will increase immediately and production of goods and services will decrease until real GDP catches up with total planned real expenditures. C) Inventories will not change and production of goods and services will not change either. D) Both inventories and production of goods and services will increase.
In general, the marginal benefit of advertising ________ as more advertising is purchased because the gross profits from advertising ________ at a(n) ________ rate.
A) increases; decrease; decreasing B) decreases; decrease; decreasing C) decreases; increase; decreasing D) decreases; decrease; increasing
If government has no debt initially but then annual revenues are $8 billion for 10 years while annual expenditures are $11 billion for 10 years, then the government has a:
A. deficit of $3 billion per year and a debt of $30 billion. B. deficit of $30 billion and a debt of $3 billion per year. C. surplus of $3 billion per year and a debt of $30 billion. D. surplus of $30 billion and a debt of $3 billion per year.