Which of the following is an example of a factor of production?
a. rent
b. interest
c. land
d. Social Security payments
c
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When indifference curves are bowed inward, the marginal rate of substitution varies at each point on the indifference curve
a. True b. False Indicate whether the statement is true or false
Ariana is the CEO of a corporation that hires nonunion labor. According to the theory of efficiency wages, if she decides to pay her workers more than the competitive equilibrium wage, then
a. the profits of her firm might increase. b. she will face a shortage of labor. c. the turnover of her workers may increase. d. None of the above is correct.
According to the interest-rate-based perspective on the monetary policy transmission mechanism
A. changes in the money supply have little influence on macroeconomic variables. B. key channels of monetary policy indirectly ultimately relate money supply changes to total planned spending through indirect effects on planned investment. C. inflation is always caused by excessive monetary growth and changes in the money supply offset aggregate demand only directly. D. monetary policy leads to increases in the price level but will have no effect on the rate of output.
Some economists prefer to look at the distribution of consumption rather than that of income. A Review of Economic Studies article in 2006 reported that consumption inequality in the U.S. is:
A. About the same as the income inequality B. Worse than the income inequality C. Less severe than the income inequality D. Highly unstable from one year to the next