The value of the marginal product of capital can be calculated as the marginal product of capital multiplied by the cost of the capital input
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following methods of restricting trade does NOT create a deadweight loss?
A) a tariff B) a quota C) a voluntary export restraint D) Both answers A and B are correct. E) None of the above answers is correct because all the methods create a deadweight loss
Economists consider the effects of free trade on income distribution to be ________ important than the effects on overall welfare because ________
A) less; those who are harmed can be compensated by those who gain B) more; those who are harmed are not compensated by those who gain C) less; the effects on income distribution are minor and inconsequential D) more; the effects on income distribution are major and consequential E) less; the wealthy benefit and only the poor lose
Suppose a basket of goods and services has been selected to calculate the CPI and 2014 has been selected as the base year. In 2012, the basket's cost was $50; in 2014, the basket's cost was $52; and in 2016, the basket's cost was $58 . The value of the CPI in 2016 was
a. 106.0. b. 104.0. c. 111.5. d. 116.0.
Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary