A technological improvement that causes an increase in the marginal product of a resource will:
A. Decrease the demand for the resource
B. Increase the demand for the resource
C. Decrease the marginal revenue product
D. Increase the marginal resource cost
B. Increase the demand for the resource
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Which of the following is a microeconomic topic?
i. K-Mart's decision to close stores that are not making a profit ii. Home Depot's choice to hire more full-time employees because its sales increased iii. Delta Airlines changes its fares. A) i only B) ii only C) i and iii D) ii and iii E) i, ii, and iii
A tax for which the average tax rate rises with income is defined as a
a. regressive tax. b. proportional tax. c. neutral tax. d. progressive tax.
If markets are perfectly competitive and production of a good results in water pollution, the imposition of a tax on that good will:
A. reduce the price of that good and increase pollution. B. reduce both the price of that good and pollution. C. increase the price of that good and reduce pollution. D. increase both the price of that good and pollution.
A bank currently has checkable deposits of $100,000, reserves of $30,000, and loans of $70,000 . If the required reserve ratio is lowered from 20 percent to 15 percent, this bank can increase its loans by:
a. $15,000. b. $10,000. c. $75,000. d. $ 0. e. $5,000.