The catch-up effect refers to the idea that
a. saving will always catch-up with investment spending.
b. it is easier for a country to grow fast and so catch-up if it starts out relatively poor.
c. population eventually catches-up with increased output.
d. if investment spending is low, increased saving will help investment to "catch-up."
b
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Refer to the figure above. The deadweight cost of the tariff equals
A) $10,000. B) $25,000. C) $50,000. D) cannot be calculated without further information.
The law of diminishing returns states that: a. as additional increments of resources are added to producing a good or service, the marginal benefit from those additional increments will increase. b. as society moves from one choice to another, the production of physical capital declines. c. it is impossible to get more of one good without giving up some amount of the other good
d. as additional increments of resources are added to producing a good or service, the marginal benefit from those additional increments will decline.
Suppose the country of Mankiwland has a new king, King Gregory. For the purpose of efficiency King Gregory's chief economic advisor would encourage him to design his country's tax system to minimize (i) deadweight losses from taxes. (ii) administrative burdens from taxes. (iii) the tax payments themselves. (iv) government expenditures to correct for market failures
a. (i) only b. (i) and (ii) only c. (iii) and (iv) only d. (i), (ii), (iii), and (iv)
Firms will hire additional workers as long as the wage:
A. equals the marginal product of labor. B. is less than the value of the marginal product of labor. C. is greater than the marginal product of labor. D. is less than the marginal product of labor.