Which of the following does not determine fiscal policy?
A. Congress through tax laws.
B. The Federal Reserve.
C. Congress through government expenditures.
D. The president.
Answer: B
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The slope of the consumption function is the
A) APS. B) MPC. C) MPS. D) APC.
Jon runs a bar in New York City. A city law prevents smoking in New York bars, but Jon is able to convince a friend in city hall to grant his bar a smoking permit by exploiting some fancy loopholes in the law
While smoking enables Jon to charge a premium to the customers (higher drink prices), his workers are subject to second-hand smoke. Therefore Jon has to pay his workers a wage higher than he otherwise would. Assuming Jon's production function is f(L,K) = L?K1-?, where L is the quantity of workers and K is the quantity of capital, how does Jon's optimal capital-to-labor ratio compare to similar bars without smoking?
.If we observe a decrease in the price of a good and an increase in the amount of the good bought and sold, this could be explained by
What will be an ideal response?
Competitive market equilibrium
A. implies that quantity demanded is sufficiently larger than quantity supplied. B. implies that quantity supplied is sufficiently larger than quantity demanded. C. is determined by the intersection of the excess demand and excess supply curves. D. is determined by the intersection of the market demand and supply curves.