Which of the following best explains why productivity growth in the United States has been faster than in other leading industrialized nations?
A) There are fewer government regulations in the United States regarding the way firms can hire and fire workers.
B) Job mobility in the United States is more restricted than it is in many foreign countries.
C) European countries have more flexible policies regarding the number of hours employees are permitted to work.
D) The financial systems of foreign countries are generally more efficient than those in the United States.
A
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If the government lowered the capital gains tax, what would be the effect in the loanable funds market? (Assume the government does not run a budget deficit.)
a. Both the supply and demand for funds would increase, lowering the interest rate and raising investment spending. b. The supply of funds would decrease, raising the interest rate and lowering investment spending. c. The supply of funds would decrease, lowering both the interest rate and investment spending. d. The supply of funds would increase, lowering both the interest rate and investment spending. e. The supply of funds would increase, lowering the interest rate and raising investment spending.
Which of the following statements about interest rate determination is most accurate?
a. In both the long run and the short run, the interest rate is determined in the market for loanable funds. b. In both the long run and the short run, the interest rate is determined in the money market. c. In the short run the interest rate is determined in the market for loanable funds, and in the long run it is are determined in the money market. d. In the short run the interest rate is determined in the money market, and in the long run it is determined in the market for loanable funds. e. The interest rate is determined through an interaction between the money market and the loanable funds market.
A perfectly competitive firm's short-run supply curve is the:
a. demand curve above the marginal revenue curve. b. same as the market supply curve. c. marginal cost curve above the average variable cost curve. d. average total cost curve.
The price elasticity of demand
a. is determined by the Federal Reserve Bank at a monthly meeting. b. only works well in competitive markets. c. intersects with the price elasticity of supply to determine the market equilibrium. d. is equal to the slope of the demand curve. e. varies from one point to another on a typical demand curve.