Refer to Figure 13A.1. The stock of capital no longer increases once the economy reaches point:
A. a.
B. b.
C. c.
D. e.
Answer: D
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All of the following are functions of the Federal Reserve System EXCEPT
A) to provide loans to developing countries. B) to act as the government's fiscal agent. C) to supply the economy with fiduciary currency. D) to hold depository institutions' reserves.
The marginal propensity to save is defined as
A) the change in saving divided by the change in disposable income. B) disposable income divided by saving. C) the change in disposable income divided by the change in saving. D) saving divided by disposable income.
The three oil shocks the U.S. experienced in 1973-1974, 1979-1980 and 2007-2008 had which of the following consistent results?
A) a decline in real wages due to an upward shift of the production function B) an increase in the rental price of capital along with a healthy stock market response C) a decline in real wages due to a downward shift of the MPL curve D) an increase in the rental price of capital due to an upward shift of the production function E) none of the above
_______ is (are) the relationship between the maximum amounts of output a firm can produce and various quantities of inputs.
A. A production function B. The law of diminishing returns C. Economies of scale D. Diseconomies of scale