As the U.S. price level decreases, expenditures by which of the following will remain unaffected?
A. Government
B. The rest of the world
C. Businesses
D. Consumers
Answer: A
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Which of the following will happen if consumption in an economy falls?
A) Firms' revenue fall. B) Labor supply falls. C) Mortgage defaults fall. D) Asset prices rise.
In 2008, the Fed created a new policy tool called
A) federal funds zero-rate, which required the Fed to lower the rate to near zero percent. B) open market operations, which required the Fed to buy securities from only the federal government. C) quantitative easing, which required the Fed to pay interest on required reserves. D) interest rate reductions, which allowed the Fed to lower interest rates paid to banks. E) quantitative easing, which allowed the Fed to buy private securities as well as government securities.
Refer to Table 10.2. If the price of output is $2 per unit and the wage rate is $40, how many workers should be hired?
A. six workers B. five workers C. four workers D. three workers
If diminishing marginal returns have already set in for Danica's Dog Training Emporium and the marginal product of the fifth dog trainer is 18, then the marginal product of the fourth dog trainer must be
A. greater than 18. B. negative. C. less than 18. D. zero.