What would be the effect of a reduction in the corporate profits tax?
a. Investment would decrease, the production function would shift downward, productivity would decrease, and so would output.
b. Investment would increase, the production function would shift upward, productivity would increase and output would decrease.
c. Investment would increase, the production function would shift upward, and both productivity and output would increase.
d. Investment would decrease, the production function would shift downward, and both productivity and output would increase.
e. Investment would increase, the production function would shift upward, productivity would decrease and output would increase.
C
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A firm with a fixed cost of $300 every month and variable cost of $200 every month decides to shut down. In such a situation it would lose:
A) $200 every month. B) $300 every month. C) $500 every month. D) $0 every month.
If investment per-worker equals some value X, and depreciation per-worker equals some value Z, then the change in the capital stock per-worker is equal to ________
A) X+Z B) X-Z C) X times Z D) X divided by Z
King James of England granted the Virginia Company all land "from sea to sea." The Proclamation Line of 1763 supported this grant
Indicate whether the statement is true or false
Which of the following can be measured by the level of real GDP per person?
a. productivity and the standard of living b. productivity but not the standard of living c. the standard of living but not productivity d. neither the standard of living nor productivity