A higher savings rate that leads to an increase in the capital stock
A) leads to higher interest rates.
B) leads to increases in labor productivity.
C) immediately decreases investment.
D) is associated with a decrease in the rate of growth of the population.
B
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Assume that a firm is operating in the short run and all resources are fixed except for labor. The total product curve for this firm will increase at a decreasing rate because:
a. value of marginal product of labor is unchanged as more labor is hired. b. marginal product of labor will decline as more labor is hired. c. value of marginal product of labor will increase as more labor is hired. d. marginal product of labor is unchanged as more labor is hired.
Explain the difference between a "change in quantity supplied" and a "change in supply."
What will be an ideal response?
The opportunity cost of capital is
A. the rate of return that could be earned by the owner's capital were it used elsewhere. B. the rate of interest the government uses to calculate legal business tax penalties. C. the rate of return realized on an investment. D. the rate used to calculate a firm's tax liability.
Ramey found that a deficit-financed temporary increase in government purchases has a multiplier in the range of
A. 0.8 to 1.5. B. 0.0 to 0.2. C. 0.2 to 0.8. D. 1.5 to 2.2.