Figure 6-1
illustrates the four possibilities of the distribution of costs and benefits among voters for a government project. For which type would the government most likely fail to undertake many projects that would be considered efficient or productive (in other words, do too few of them relative to economic efficiency)?
a.
type A
b.
type B
c.
type C
d.
type D
c
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In order for a labor supply curve to be backward bending at high wages
A) workers must have an irrational response to wage increases. B) leisure must be an inferior good. C) the substitution effect of a wage increase must be greater than the income effect. D) the income effect of a wage increase must be greater than the substitution effect.
The theory of land rent holds that
a. capital invested on any plot of land must yield the same return as capital invested on any other plot of land. b. the difference between the costs of producing on any two pieces of land must equal the difference between their rents. c. marginal land earns no rent. d. All of the above are correct.
When the required reserve ratio is 20 percent, the money multiplier is:
A. 0.2. B. 2. C. 2.5. D. 5.
When a bakery manager reports that at her bakery, productivity of her 15 workers last month was 1,800 loaves per worker, she is referring to the:
A. Total product of labor B. Average product of labor C. Marginal product of labor D. Total product of capital