If hiring the 6th worker increases total product by 7 units and the price of each unit is $2,
a. the firm should not hire the 6th worker as MB c
c. the firm should hire the 6th worker as MB>MC
d. the firm should not hire the 6th worker as MB
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Which of these is a flow variable?
a. Money b. Income c. Jewelry d. Bank deposit e. Foreign currency reserve
Which of the following statements is correct?
a. The United States has a more equal distribution of income than other developed countries such as Japan and Germany. b. The statement "a rising tide lifts all boats" illustrates how economic growth reduces the number of people with income levels below the poverty line. c. The economic life cycle explains why people base spending decisions on transitory income. d. The United States has more income inequality than developing countries, including Mexico and Brazil.
The Federal Reserve uses open market operations rather than changes in legal reserve requirements as its principal tool of monetary management because changes in legal reserve requirements
A) can be easily evaded by commercial banks. B) must secure Congressional approval. C) would be excessively powerful and disruptive. D) would be less profitable for the Federal Reserve Banks.
Mode income is
A) the most common income. B) the average income. C) the middle income level. D) the same as money income.