During a recession, ______.
a. earnings and profits decrease, and government revenues increase
b. earnings and profits increase, and government revenues decrease
c. earnings, profits, and government revenue all decrease
d. earnings, profits, and government revenue all increase
c. earnings, profits, and government revenue all decrease
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"Since the wind and the flowing rivers can take away industrial waste without charge, polluting is a profitable activity even when people are seriously harmed downwind or downstream, unless environmental regulators stop it." This statement is
a. false if the property rights of downwind or downstream individuals are protected. b. true if the property rights of industrialists are enforced. c. never true. d. always true.
The law of increasing opportunity costs causes the production possibilities curve to:
A. be a straight line. B. slope upwards. C. have a bowed-out shape. D. shift inward.
Henry Trudeau deposits $2,000 in currency in the First Street Bank. Later that same day Jane Harris negotiates a loan for $5,400 at the same bank. After these transactions, the supply of money has:
A. increased by $7,400. B. decreased by $3,300. C. increased by $3,300. D. increased by $5,400.
Suppose that one worker can produce 15 cookies, two workers can produce 35 cookies together, and three workers can produce 50 cookies together. What is the marginal product of the 3rd worker?
A. 20 cookies B. 35 cookies C. 50 cookies D. 15 cookies