At the break-even point for the consumption function
A) saving is positive. B) saving is zero.
C) saving is negative. D) the marginal propensity to consume equals l.
B
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Imagine the government would like to increase revenues by taxing the people. If they place a unit tax on certain goods, this is equivalent to
a. c and e b. shifting the demand curve to the right c. reducing everyone's income by the amount of the unit tax d. raising the fixed costs of producers e. shifting the supply curve to the left
A business firm's profitability is based in part on the
A) prices of their nonlabor inputs. B) productivity of their workers. C) wage rates they must pay their workers. D) business taxes they must pay. E) all of the above
If the law of diminishing marginal product holds true and workers emigrate from Haiti, the marginal product of the workers remaining in Haiti will:
A. fall because fewer workers are working with the same amount of capital. B. fall because more workers are working with the same amount of capital. C. rise because fewer workers are working with the same amount of capital. D. rise because more workers are working with the same amount of capital.
Using the Keynesian model, the effect of a decrease in the effective tax rate on capital would be to cause ________ in the real interest rate and ________ in output in the short run.
A. a decrease; no change B. an increase; an increase C. no change; a decrease D. a decrease; a decrease