When taxes on the return to capital in a given economy are reduced, it causes firms to employ __________ capital goods. In terms of the production function (graphed with labor on the horizontal axis and Real GDP on the vertical axis), this then causes ____________________ which makes the LRAS curve shift ____________ resulting in ______________________
A) less; the production function to shift downward; leftward; a shrinking economy
B) more; the production function to shift upward; rightward; economic growth
C) more; a movement up along a given production function; rightward; economic growth
D) more; a movement down along a given production function; leftward; a shrinking economy
B
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If the stockholders' equity of a bank is $30,000 and the total liabilities of the bank is $10,000, the total assets of the bank will equal:
A) $10,000. B) $20,000. C) $40,000. D) $30,000.
Which of the following statements is true regarding part-time workers?
A) Part-time workers who are part-time for economic reasons are included in the unemployment rate, but part-time workers who are part time for noneconomic reasons are not included in the unemployment rate. B) The percentage of workers who are part time due to non-economic reasons rise significantly during recessions. C) The percentage of workers who are part time due to non-economic reasons is about the same percentage as those who are voluntary reasons. D) Part-time workers are divided those who voluntary choose part-time work and those who work part-time due to economic reasons. E) The percentage of workers who are part time due to economic reasons does not change much over the business cycle.
Which of the following is NOT a reason for average costs to fall according to the learning curve?
A) Workers accomplish tasks more quickly after doing the task a few times. B) Managers schedule more efficiently over time. C) Engineers determine more accurately what tolerances can be used. D) Suppliers may become better able to produce the exact inputs the firm needs. E) Competing firms leave the industry as the learning firm becomes more efficient.
Governments may prefer an inflation tax to some other type of tax because the inflation tax
a. is easier to impose. b. reduces inflation. c. falls mainly on high-income individuals. d. reduces the real cost of government expenditure.