If a lump-sum tax of $40 billion is levied at each level of income and the MPC is 0.75, then the saving schedule will shift
A. downward by $25 billion.
B. downward by $10 billion.
C. upward by $25 billion.
D. upward by $10 billion.
Answer: B
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Which of the following is one of the chief reasons for the change in the participation rate of married women in the U.S. workforce?
The tendency for people to behave in a riskier way or to renege on contracts when they do not face the full consequences of their actions is called:
A. collective bargaining. B. adverse selection. C. moral hazard. D. counter information.
To answer, refer to the following:"At Huffy's ... bicycle factory, 1,700 employees turn out 15,000 bicycles a day (in 1987). Five years before, it required 2,200 workers to make 10,000 bikes daily." (The Wall Street Journal). In 1987,
A. total product was 15,000 bicycles per day. B. the average product of labor was 0.11. C. the marginal product of labor was 8.8. D. both a and b E. both a and c
If a firm is a perfectly competitive purchaser of factor inputs and the wage rate is $1, the marginal factor cost for labor is
A. $1. B. less than $1. C. greater than $1. D. indeterminate.