________ are short-term loans in which Treasury bills serve as collateral
A) Repurchase agreements
B) Negotiable certificates of deposit
C) Federal funds
D) U.S. government agency securities
A
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Let the marginal product of labor and capital be denoted by MPL and MPK respectively. The price of labor and capital are given by PL and PK respectively. Which of the following equations gives the condition for producing a given level of output at the least cost combination of inputs?
a. PL × PK = MPL × MPK b. PL × MPL = PK × MPK c. MPL ÷ PK = MPK ÷ PL d. PL ÷ PK = MPL ÷ MPK
Dan is the pricing director for a near monopoly. He has been warned to avoid predatory pricing. Which of the following actions does Dan need to avoid?
a. pricing products at exactly the same level as competitors b. charging higher prices when raw material costs increase c. charging different prices to different customers based on their occupation d. lowering prices to bankrupt his competitors, then raising prices dramatically
There are ten states in the democratic nation of Katlandia, and each state has ten thousand residents. Although incomes vary, each Katlandian pays a tax equal to the total cost of all government projects divided by the number of residents in the country. Currently, two states each have one army base. An army base adds $2 million to a state's local economy each year. In addition, in terms of increased security, the annual marginal benefit to Katlandia of having an additional army base is shown below. The total cost of an army base is $8 million per year.
Suppose the department of defense proposes to build a third base in the state of New Porkswick. The
state representative from New Porkswick will ________ this proposal because ________. A. support; it is socially optimal for Katlandia to have a third army base. B. not support; the benefits to his or her constituents would be smaller than the resulting increase in taxes. C. not support; it is not socially optimal for Katlandia to have a third army base. D. support; the benefits to his or her constituents would outweigh the resulting increase in taxes.
Government expenditures for Social Security and unemployment insurance are, for GDP accounting purposes, considered:
A. transfers, and are included in government spending as part of GDP. B. transfers, and are not included in government spending as part of GDP. C. purchases, and are not included in government spending as part of GDP. D. purchases, and are included in government spending as part of GDP.