Holding other factors constant, an incline in the price of new capital goods will:
A. decrease investment.
B. decrease national saving.
C. increase investment.
D. increase national saving.
Answer: A
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The principle of diminishing sensitivity holds that:
A. the marginal impact of enlarging a change from the status quo declines with the size of the change. B. the marginal impact of enlarging a change from the status quo increases with the size of the change. C. the total impact of enlarging a change from the status quo declines with the size of the change. D. the total impact of enlarging a change from the status quo increases with the size of the change.
A laissez-faire economy has minimal, if any, government regulations or laws affecting the economy.
Answer the following statement true (T) or false (F)
Whether a particular technological innovation is good for a particular worker depends on the effect of that innovation on the worker's:
A. reservation price. B. labor mobility. C. union contract. D. marginal product.
If the actual interest rate in the money market is higher than the equilibrium interest rate, there would be an excess supply of money
Indicate whether the statement is true or false