What is the struggle among various producers for the consumer's buisness called?
a) socialism
b) competition
c) incentive
d) self-regulation
Ans: b) competition
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Policies to promote growth by increasing saving and investment work through
A) increasing the supply of loanable funds, lowering the interest rate, raising the level of investment in physical capital. B) increasing the supply of loanable funds, lowering the interest rate, lowering the level of investment in physical capital. C) increasing the supply of loanable funds, increasing the interest rate, raising the level of investment in physical capital. D) decreasing the supply of loanable funds, lowering the interest rate, raising the level of investment in physical capital.
Edward Denison's analysis of the American economy found that
A) total factor productivity was the largest source of economic growth since 1948. B) the contribution of labor growth has been more variable than the contribution of capital growth. C) productivity growth has been positive over every period of more than five years since WorldWar II. D) the contribution of labor growth has been greater than the contribution of capital growth.
When positive spending shocks occur, transfer payments automatically fall
a. True b. False
You have been hired by the No Hassle Collection Agency to provide economic advice. The owner of the agency tells you that No Hassle's only variable input is the number of collection agents. The hourly wage for collection agents is $30.00. The marginal revenue product curve for collection agents reaches its maximum at five workers with a marginal revenue product of $34.00. What advice would you give this firm?
A. Hire collection agents until the marginal revenue product is equal to the wage-which will occur when more than five agents are employed. B. Hire five collection so as to maximize profits. C. Decrease the wage rate paid to collection agents so that their marginal revenue product will decrease. D. Shut down immediately, as the firm is not able to cover all of its variable costs.