An improvement in technology that allows workers to process twice as many insurance forms in an hour than before will cause
a. more labor to be employed because its marginal revenue product has fallen
b. an increase in insurance premiums
c. fewer workers to be employed because their marginal revenue product has decreased
d. more workers to be employed because their marginal revenue product has increased
e. fewer workers to be employed because their marginal revenue product has increased
D
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Which of the following is a drawback of command-and-control regulation?
a. Applying the same standard to all firms b. Being enforced by industry executives c. Providing too much flexibility d. Relying too heavily on market tools
Although monopoly has lower output than competition, the level of output is efficient
a. True b. False Indicate whether the statement is true or false
Which best describes the Keynesian transmission mechanism when the money supply increases?
A) The interest rate rises; this in turn reduces investment spending, which in turn raises total expenditures and shifts the AD curve rightward. B) The interest rate falls; this in turn stimulates investment spending, which in turn raises total expenditures and shifts the AD curve leftward. C) The interest rate falls; this in turn stimulates investment spending, which in turn raises total expenditures and shifts the AD curve rightward. D) The interest rate falls; this in turn stimulates investment spending, which in turn lowers total expenditures and shifts the AD curve leftward.
According to Joseph Stiglitz, the former chief economist of the World Bank, what is the choice poor countries currently face?
A. whether they should fund gas subsidies or health care subsidies B. whether they should pay off their debts or invest in an army C. whether they should pay off their debts or tackle corruption D. whether they should pay off their debts or fund health care and education