The assumption that the marginal product of labor decreases as the labor input increases implies that
A) output decreases as the labor input increases.
B) the wage increases as the labor input increases.
C) the production function is concave.
D) the production function shifts upward.
C
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An increase in wealth leads to ________ loanable funds
A) a decrease in the demand for B) an increase in the supply of C) a decrease in the supply of D) an increase in the demand for E) no change in either the supply of loanable funds or the demand for
An individual with a constant marginal utility of income will be
A) risk averse. B) risk neutral. C) risk loving. D) insufficient information for a decision
Which of the following will most likely occur as the result of an unanticipated increase in aggregate demand that pushes output beyond long-run capacity?
a. an increase in the natural rate of unemployment b. an increase in the real interest rate c. a decrease in the real interest rate d. a decrease in the general level of prices
Government can push the unemployment rate below the natural rate only by:
A. instituting supply-side economic policies. B. producing a higher rate of inflation than people expect. C. balancing the federal budget. D. achieving zero inflation.