In a business cycle recession, which of the following occurs?
A) The quantity of investment demanded increases and there is a movement down along the demand for loanable funds curve but no shift in the curve.
B) Investment demand increases and the demand for loanable funds curve shifts rightward.
C) Investment demand decreases and the demand for loanable funds curve shifts leftward.
D) The quantity of investment demanded decreases and there is a rightward shift of the demand for loanable funds curve.
E) The quantity of investment demanded decreases increases and there is a movement up along the demand for loanable funds curve but no shift in the curve.
C
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In the United States, the highest quintile of income earners face an average federal tax rate of ________, and the lowest quintile of income earners face an average federal tax rate of ________
A) 20%; 20% B) 68.8%; 0.4% C) 24%; 1.5% D) 29.4%; 11.5%
Diminishing returns along a production function means that each additional hour of labor employed
A) produces a successively smaller additional amount of real GDP. B) produces a successively larger additional amount of real GDP. C) produces a constant additional amount of real GDP. D) does not produce any additional real GDP. E) forces the real wage rate to rise.
The closer a market's Herfindahl-Hirschman Index (HHI) is to ________ the more competitive the market, which means there are ________ firms in the market.
A) 10,000; few B) 10,000; many C) 100; many D) 100; few
Efficiency wages
a. increase productivity and reduce unemployment. b. increase productivity but increase unemployment. c. decrease productivity but reduce unemployment. d. decrease productivity and increase unemployment.