Table 7-4
?
6
346
490
600
692
775
846
?
5
316
448
548
632
705
775
?
4
282
400
490
564
632
692
CAPITAL
3
245
346
423
490
548
600
?
2
200
282
346
400
448
490
?
1
141
200
245
282
316
346
?
0
1
2
3
4
5
6
?
LABOR
?
?
?
?
?
Table 7-4 shows a production relationship. Assuming the labor input is fixed at 4, what will be the optimum capital input assuming an output price of $1 and a $90-per-day cost for one unit of capital?
A. 1
B. 2
C. 3
D. 4
Answer: C
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A. Congress B. the central bank (the Fed) C. the president and her economic advisors D. the World Bank
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A. Wealth effects. B. Income effects. C. Price effects. D. Output effects.
Inflation affects:
A. both the level and the distribution of income. B. neither the level nor the distribution of income. C. the distribution, but not the level, of income. D. the level, but not the distribution, of income.