Refer to Figure 10.7. A movement from point B to point D could be caused by
A) an increase in the target interest rate.
B) an increase in consumer confidence.
C) an increase in the term structure effect.
D) a decrease in the expected rate of inflation.
B
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A key factor that leads to economic growth is
A) human capital accumulation. B) increasing current consumption. C) avoiding the opportunity cost of investment. D) Both answers A and B are correct.
Refer to the above table. Suppose the marginal revenue product of the 5th worker is $800. This implies that
A) the price of the good is $5.33. B) the price of the good is $8. C) the price of the good is $70. D) we cannot tell what the price of the good is without more information.
An externality exists whenever
a. the economy cannot benefit from government intervention. b. markets are not able to reach equilibrium. c. a firm sells its product in a foreign market. d. Bobbi engages in an activity that influences the well-being of Rosa and yet Bobbi neither pays nor receives payment for that influence.
As a result of an increase in the personal income tax rate, consumers are likely to:
A. spend less. B. spend more. C. save more. D. earn more money.