If the government were to decrease its spending, it would expect aggregate demand to:
A. fall, and thus GDP to fall.
B. rise, and thus GDP to fall.
C. fall, and thus GDP to rise.
D. rise, and thus GDP to rise.
A. fall, and thus GDP to fall.
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We manufacturer automobiles given the production function q = 5KL where q is the number of autos assembled per eight-hour shift, K is the number of robots used on the assembly line (capital) and L is the number of workers hired per hour (labor)
If we use K=10 robots and L=10 workers in order to produce q = 450 autos per shift, then we know that production is: A) technologically efficient. B) technologically inefficient. C) maximized. D) optimal.
All taxes carry which of the following costs?
A. Time in creating procedures for collecting revenues B. Enforcing tax payments C. Managing collected funds D. All taxes incur all of these costs.
We observe that the price per ounce of milk in a quart container is higher than the price per ounce in a gallon container. What is the likely reason for this?
A. The higher costs of quart containers B. The higher costs of production of milk in smaller quantities. C. Higher transportation costs for smaller container sizes. D. The marginal utility of milk is higher in smaller containers than it is in larger containers.
________ policy focuses on the nation's money supply, while ________ policy aims at changing the underlying structures or institutions of the economy.
A. Monetary, fiscal B. Monetary; structural C. Fiscal, structural D. Fiscal, monetary