When the amount of output produced by a given amount of inputs increases, the MOST LIKELY result is
A) overall productivity rises.
B) economic interdependence rises.
C) consumer spending on productive resources increases.
D) business spending on productive resources increases.
Ans: A) overall productivity rises
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Tina's marginal utility of her first piece of cake is 15, while Jerry's marginal utility of his first piece of cake is 24 . An economist would conclude that:
a. Tina likes cake more than Jerry likes cake. b. Jerry likes cake more than Tina likes cake. c. Tina likes cake less than Jerry likes cake. d. Jerry likes cake less than Tina likes cake. e. we can't make a comparison to see who values cake more.
Explain why a change in income tax rates causes the consumption schedule to change slope.
What will be an ideal response?
If debt-financed less productive government spending crowds out more productive private investment, future generations will bear
A. All of the burden of the debt due to higher taxes. B. A portion of the burden of the debt relative to the population size. C. Some of the burden of the debt due to lower productive capacity. D. Zero burden as a result of the debt.
Which of the following is an important goal of the price index?
a. to show current GDP in dollars of inflated purchasing power b. to show current GDP in physical units of inflated purchasing power c. to show real GDP in dollars of constant purchasing power d. to show real GDP in physical units of constant purchasing power