If labor costs $10 per unit and machines rent for $20 apiece, the slope of an isocost line might imply a substitution of:
A. one unit of labor for two units of machinery.
B. one unit of machinery for two units of labor.
C. two units of machinery for three units of labor.
D. one unit of labor for one unit of machinery.
Answer: B
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The present value of $1 million to be received 10 years from now will
a. decrease if the interest rate rises. b. be greater if the funds were going to be received 15 years from now. c. be greater than $1 million. d. increase if the interest rate were to rise from 4 percent to 8 percent.
Deficit spending:
What will be an ideal response?
Many economists oppose a constitutional amendment that would require a balanced budget for the federal government because it would probably make the business cycle more volatile
a. True b. False Indicate whether the statement is true or false
Assume that the full-employment level of output is $2,000 and the price level associated with full-employment output is 100. Also assume that the economy's current level of output is $1,900 and, at the price level of 100, current aggregate demand is $1,850. If the government moves the economy back to the full-employment level of output by increasing government purchases by $30, then the MPC equals
A. 0.8. B. 0.5. C. 0.6. D. 0.75.