Economic rent is the portion of a resource's total earnings that:
a. exceeds its actual cost
b. exceeds it marginal cost
c. exceeds its opportunity cost
d. exceeds it average total cost
c
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Suppose the U.S. population is 275 million. If 210 million people are of working age, 135 million are employed, and 6 million are unemployed, what is the labor force participation rate?
A) 49 percent B) 67 percent C) 64 percent D) 51 percent E) 76 percent
Contractionary fiscal policy involves decreasing government purchases or increasing taxes
Indicate whether the statement is true or false
In an open economy, a decrease in capital inflows ________ the equilibrium domestic real interest rate and ________ the quantity of domestic investment.
A. decreases; decreases B. decreases; increases C. increases; decreases D. increases; increases
If the required reserve ratio is 15 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the M1 money multiplier is
A) 2.5. B) 1.67. C) 2.3. D) 0.651.