The income effect of a wage increase is expected to increase
a. supply of labor.
b. supply of goods and services.
c. demand for leisure.
d. demand for labor.
c
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A bank can only make a loan if it has
A) excess reserves. B) a creditworthy customer willing to pay a high interest rate. C) permission from the Federal Reserve. D) reserves equal to its deposits.
The Beard-Hacker Thesis claims that post-bellum economic growth in the United States:
a. was slowed by rapid immigration. b. was accelerated by rapid immigration from English speaking countries. c. was slowed by the formation of industrial monopolies. d. was accelerated by economic and financial changes generated by the Civil War.
The Indian government is known for creating obstacles to foreign investment with tariffs, investment caps and tons of red tape. What effect does "red tape" have on growth?
A. It encourages learning by doing. B. It discourages entrepreneurship. C. It discourages leisure. D. It encourages specialization.
Which of the following physical relationships might generate economies of scale?
A. Each lift truck requires one lift truck driver. B. Proportionally larger pipes can transport more than a proportional increase in oil. C. Larger equipment tends to weigh more and use more fuel on a per-unit-of-output basis. D. A doubling of all inputs leads to a doubling of output.