The most volatile component of aggregate demand is
A. consumer spending.
B. government purchases.
C. net exports.
D. investment spending.
Answer: D
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The marginal revenue product of capital is not the
a. change in total revenue when one more unit of labor is hired b. change in total revenue that results from adding one more unit of loanable funds to production c. marginal contribution of capital to total revenue d. firm's demand for capital curve e. marginal physical product of capital multiplied by the price of the good
Which of the following transactions does not take place in the markets for factors of production in the circular-flow diagram?
a. a landowner leases land to a farmer b. a farmer hires a teenager to help with harvest c. a construction company rents trucks for its business d. a woman buys corn for dinner
In his 1951 book, Social Choice and Individual Values, Kenneth Arrow defined a "perfect" voting system. That system includes which of the following features?
a. unanimity b. transitivity c. absence of a dictator d. All of the above are correct.
When a central bank buys or sells government bonds, it conducts:
(a) An open-market operation. (b) A reserve requirement. (c) Inter-bank lending. (d) None of the above.