Comparing steady states, which of the following is a result of a permanent increase in the saving rate, but is not a consequence of a one-time increase in productivity?
A) an increase in consumption per worker
B) a decrease in the marginal product of capital
C) an increase in output per worker
D) an increase in the growth rate of output
B
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If the economy is on the LM curve, but is to the left of the IS curve, aggregate output will ________ and the interest rate will ________
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
The percentage of additional income that will have to be paid in tax is an individual's _____
a. marginal tax rate b. average tax rate c. proportional tax rate d. flat tax rate
A solution to the budget-gaming problem is
a. Remove all kinks from the compensation schedule b. Use a target based pay function with each target scoring greater return c. Base compensations on meeting particular budget goals d. All of the above
Which of the following statements is most accurate regarding who benefits and loses from establishing a minimum wage above the market clearing wage?
A. All workers benefit equally from the establishment of the minimum wage because just as many workers as before remain employed, and all earn the higher minimum wage. B. Individuals who obtain jobs benefit because they earn a higher wage, but some individuals lose because employers will not hire them at the minimum wage. C. All employers benefit equally from the establishment of the minimum wage because they are able to hire fewer workers at a lower wage. D. All employers lose because they must pay the higher minimum wage to the same number of employees as they did before the minimum wage was established.