Golden Rule of Cost Minimization - to minimize cost, the firm should employ inputs in such a way that the _______________ per dollar spent is equal across all inputs.
Fill in the blank(s) with the appropriate word(s).
Answer: marginal product
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The President proposes a reduction of personal income marginal tax rates in the United States. When marginal tax rates are reduced, there is
A) a decrease in the magnitude of the expenditure multiplier. B) an increase in the magnitude of the expenditure multiplier. C) a decrease in the marginal propensity to consume. D) no change in the slope of the AE line. E) an increase in the marginal propensity to consume.
M2 includes M1 plus
A) currency in circulation, checking account deposits in banks, and holdings of traveler's checks. B) savings account balances, money market deposit accounts in banks, small-denomination time deposits, and noninstitutional money market fund shares. C) checking account deposits, large-denomination time deposits, and noninstitutional money market fund shares. D) currency in circulation, savings account balances, and small-denomination time deposits.
Ceteris paribus, a decrease in the U.S. price level will cause
a. an increase in U.S. exports. b. an increase in U.S. imports. c. the aggregate demand curve to shift to the right. d. the aggregate demand curve to shift to the left.
In moving along a demand curve, which of the following is not held constant?
A. the price of the product for which the demand curve is relevant B. consumer incomes C. people's tastes and preferences D. price expectations