The marginal productivity theory of income states that a person's total income is determined by
A) how much the individual works.
B) how profitable the firm the individual works for is.
C) how much the individual has inherited.
D) the amount and productivity of factors of production the individual owns.
D
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The monetary rule is the view of the:
a. Keynesians that monetary policy is most important. b. Monetarists that monetary policy is most important. c. Classical economists that monetary policy is most important. d. Monetarists that the Fed should expand the money supply at a constant rate.
Which of the following lowers the incentive for a firm to invest in research and development?
a. The potential for resulting innovations to be copied b. The inability of a firm to balance private and social benefits c. The high cost of investing in human capital d. The lack of legal protection for innovations and inventions
Which of the following illustrates consumer surplus?
a. Jon and Gabi find the perfect apartment, but it is $100 per month over budget. b. When Amy shops for a new car, she finds dozens of options in her price range. c. Beck finds an online deal for a plane ticket to Miami that is $100 under his budget. d. Stores cannot stock enough round sunglasses after a celebrity promotes the style.
Average Fixed Cost is
A. the per unit cost of production. B. the per unit fixed cost of production. C. the per unit variable cost of production. D. the addition to cost associated with one additional unit of output.