The proposition that an increase in the federal budget deficit caused entirely by a current tax cut has no effect on aggregate demand is called the
A. indirect effect.
B. open-economy effect.
C. interest rate effect.
D. Ricardian equivalence theorem.
Answer: D
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What are the outcomes of the following games, assuming the max-min criteria is used?
What will be an ideal response?
For the past several decades, the percentage of national income in the United States allocated to human capital (employees and self-employed workers) has been approximately
a. 20 percent. b. 40 percent. c. 60 percent. d. 80 percent.
The extra production gained by employing one more worker is called the:
A. opportunity cost of labor. B. marginal product of labor. C. real wage of labor. D. price of labor.
As you consume more of a particular commodity, your total level of utility derived from that consumption will
A. increase at a decreasing rate. B. increase at an increasing rate. C. increase at a constant rate. D. remain constant.