The burden of the public debt
a. cannot create inflation
b. may create inflation if it is held by the Fed and financed by taxes
c. may create inflation if it is held by foreigners
d. may create inflation if it is held by the Fed and financed by the creation of deposits in the Treasury's account at the Fed
e. may create inflation if it is held by state and local governments and financed by property or sales taxes
D
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The change in total output obtained from using an additional unit of a variable input, holding other inputs constant is;
(a) Average Product. (b) Marginal Product. (c) Total Product. (d) Average Revenue.
Your enterprising uncle opens a sandwich shop that employs 5 people. The employees are paid $12 per hour, and a sandwich sells for $4.
If your uncle is maximizing his profit, the value of the marginal product of the last worker he hired is ___________, and that worker's marginal product is _______ sandwiches per hour.
A shortage will occur if:
A. the quantity being supplied at a given price exceeds the quantity demanded at that price. B. the quantity being supplied at a given price is less than the quantity demanded at that price. C. there are not enough buyers in the market. D. there are only inexperienced firms in the market.
The term "tragedy of the commons" is used to describe
a. overpricing of computer software by Microsoft. b. an increase in rents when air quality in a community improves. c. the difficulty in obtaining honest evaluations of public goods. d. the elimination of social gains due to the overuse of property without a well-defined owner.