Econ final

If country A has a relatively high access to implementing technologies and country B has a relatively low access to technology, which of the following does the slow growth model predict for the long-run outcomes? a. country A will converge to a higher level of capital per worker than country B b. country B will converge to a higher level of capital per worker and output per worker than country C c. country A will grow faster than country B, until both have the same level of capital per worker and output per worker d. country B will grow faster than country A, until both have the same level of capital per worker and output per worker

a

If country A has a relatively high rate of savings and country B has a relatively low rate of savings, which of the followings does the slow growth model predict for the long-run outcomes? a. country A will converge to a higher level of capital per worker and output per worker than country B b. country A will grow faster than country B, until both have the same level of capital per worker and output per worker c. Country B will converge to a higher level of capital per worker and output per worker than country C d. country B will grow faster than country A, until both have the same level of capital per worker and output per worker

a

If there is a decrease I wages, what is the expected impact on consumers' utility-maximizing choices for consumption and leisure? a. consumption decreases and the decision for leisure is indeterminate b. consumption decreases and leisure increases c. consumption and leisure both decrease d. leisure decreases and there is no change in consumption

a

Pareto optimality is defined by which of the following? a. when it is impossible to make someone better off without making someone else worse off b. when it is possible to make someone better off without making someone worse off c. when everyone is as well off as can be d. when both utility and profits are maximized

a

Suppose consumers expect a decrease in future income, but there is no change in current income. How will consumers' decisions change as a result? a. decrease in current consumption b. increase in interest rate c. increase in future consumption d. decrease in current saving

a

Suppose consumers' income increases in the current period, but the change is expected to be temporary, so there is no change in what is expected for future income. How will consumers' decisions change as a result? a. future consumption increases b. savings decrease c. current consumption decreases d. future consumption decreases

a

Suppose one country has a lower long-run level of output per worker than another country. What does the slow growth model predict as a possible reason why this can happen? a. the countries have different levels of capital per workers b. the countries have different population sizes c. the countries have different average savings rates d. the slow growth model predicts two countries will always eventually converge to the same level of output per worker

a

Suppose the interest rate decreases. Which of the following is true for a person who is saving? a. total utility decreases b. consumption in the current period decrease c. total utility increase d. consumption in the current period increases

a

What is one aspect of human capital accumulation that is different than physical capital accumulation? a. human capital accumulation can be non-rivalrous b. human capital grows at a rate higher than the population rate and physical capital does not c. human capital accumulation does not depreciate d. human capital can be stored unlike physical capital

a

What is the impact of an increase in future wealth on the consumer's utility maximizing decision for current-period leisure and labor supply? a. increase in leisure and decrease in labor supply b. future wealth does not affect current leisure or labor supply decisions c. decrease in leisure and increase in labor supply d. indeterminate changes in leisure and labor supply

a

Which of the following causes a downward or leftward shift in the demand for labor? a. destruction of capital stock b. a decrease in taxes c. an improvement in technology that increases the marginal product of labor d. an increase in wage

a

Which of the following causes an output pivot of the per-worker production function in the slow growth model? a. increase in total factor productivity b. increase in depreciation rate c. decrease in the depreciation rate d. increase in the labor force

a

Which of the following conditions will cause an unregulated market to be not socially optimal? a. negative externalities b. positive government expenditures c. positive lump sum taxes d. zero taxes

a

Which of the following describes the crowding out effect? a. When an increase in government expenditures results in consumers decreasing their consumption demand, offsetting the positive impact that increasing government spending has on GDP b. an increase inn government expenditures causes an increase in consumption demand c. an increase in government expenditures leads to a decrease in leisure, leading to an increase in labor supply and partially offsetting the positive impact on real GDP d. a decrease in taxes today with no credible change in government spending in the present or future causes consumers to not alter their consumption decisions

a

Which of the following is a description of diminishing marginal product of capital? a. when the capital stock increases, the marginal product of capital decreases b. when the capital stock decreases, total production decreases c. when the capital stock increases, total production decreases d. when the capital stock decreases, the marginal product of capital decreases

a

Which of the following is a result of an increase in government expenditures on the socially optimal outcome? a. decrease in consumption and an increase in employment b. decrease in consumption and an increase in leisure c. decrease in production and a increase in leisure d. increase in employment and increase in consumption

a

Which of the following is a result of the assumption of diminishing marginal product of labor? a. the production possibilities frontier is bowed outward b. the production possibilities frontier is downward sloping c. the indifference curves are convex d. the demand curve is downward sloping

a

Which of the following is an expenditure included in the aggregate expenditure approach to calculating real GDP? a. exports b. goods produced abroad c. nominal price level d. real price level

a

Which of the following is considered investment in macroeconomics? a. business purchasing a new building b. consumer buying mutual funds to build savings for retirement c. interest earned from savings d. consumer purchases of final goods and services

a

Which of the following is taken as given in the social planner problem? a. state of total factor productivity and the quantity of capital b. the quantity of production and the quantity of labor c. the state of technology and the quantity of labor d. the quantity of labor and the quantity of capital

a

Which of the following is the optimal choice for the social planning problem? a. choose consumption and leisure where (marginal utility of leisure) / (marginal utility of consumption) = marginal product of labor b. choose consumption and labor supply where (marginal utility of leisure) / (marginal utility of consumption) = wage c. chose employment and output where marginal product of labor = wage d. chose leisure and consumption where marginal utility of leisure = marginal utility of consumption

a

Which of the following is true about nominal GDP? a. it is not adjusted for inflation b. it is adjusted for inflation c. it only includes service production d. it only includes goods production

a

Which of the following is true? a. growth rate of the implicit GDP price deflator b. growth rate of real GDP c. growth rate of nominal GDP d. growth rate of base year

a

Which of the following will cause governments to become insolvent? a. when governments run budget deficits every year and the interest rate is higher than the growth rate of real GDP b. when governments run budget deficits that are larger than the budget surpluses from other years c. when governments do not run a balanced budget every year d. any time governments run budget deficits year after year without having some years of budget surpluses to pay back the borrowed funds

a

Which of the following will result in an increase in the optimal choice for future-period consumption? a. increase in interest rates, given substitution effects dominate b. decrease in current-period wage, given substitution effects dominate c. decrease in future wages, given substitution effects dominate d. decrease in current-period taxes

a

Which variable (s) does the representative firm take as given in the perfectly competitive profit maximization model? a. wage b. quantity of production c. profits d. wage and profits

a

According to the evolution of capital equation in the slow growth framework, which of the following leads to less capital in the future? a. an increase in government expenditures b. an increase in the depreciation rate c. an increase in the savings rate d. an increase in the population growth rate

b

How can the situation be described if no person's utility can be raised without decreasing another person's utility? a. negative externality b. pareto optimal c. pareto inefficient d. positive externality

b

If consumers change the way they value consumption versus leisure, deciding that they value leisure more than before and are willing to give up more consumption for more leisure, what is the impact on the consumer's utility-maximization problem? a. the budget constraint becomes steeper b. the indifference curve becomes steeper c. the indifference curve becomes flatter d. the budget constraint becomes flatter

b

If the consume his borrowing in the current period, then what must be true of the consumption savings model? a. the interest rate is above the endowment point b. the consumption bundle is to the right and below the endowment point c. the consumption bundle is to the left and above the endowment point d. the interest rate is below the endowment point

b

If the government increases taxes in the current period, what does the Ricardian equivalence predict will be the response to current consumption? a. indeterminate effect on current consumption b. no effect on current consumption c. increase in current consumption d. decrease in current consumption

b

If there is an increase in wages, what is the expected impact on consumption, leisure, and labor supply? a. consumption, leisure, and labor supply all increase b. consumption increases, leisure and labor supply are indeterminate c. consumption is indeterminate, leisure increases, labor supply decreases d. consumption is indeterminate, leisure decreases, labor supply increases

b

Suppose consumers expect an increase in future income, but there is no change in current income. How will consumers' decisions change as a result? a. increase in current leisure b. increase in future consumption c. decrease in current saving d. decrease in current consumption

b

Suppose the interest rate decreases for someone who is borrowing. Which of the following is true? a. the substitution effect causes a decrease in current consumption and the income effect also results in a decrease in current consumption b. the substitution effect causes an increase in current consumption and the income effect results in an increase in current consumption c. the substitution effect causes an increase in current consumption and the income effect results in a decrease in current consumption d. the substitution effect causes a decrease in current consumption and the income effect results in an increase in current consumption

b

Suppose the interest rate decreases. Which of the following is true for a person who is borrowing? a. total utility increases b. total utility decreases c. consumption in the future period decreases d. consumption in the current period decreases

b

What are human capital externalities? a. when one person's human capital causes technological progress b. when one person's human capital positively affects another persons productivity c. when one person's human capital leads to waste of physical capital d. when one person's human capital is not used in the production process

b

What happens when there is a decrease in the capital stock, all else remaining equal? a. marginal product of labor increases b. the marginal product of capital increases, due to diminishing marginal product of capital c. the marginal product of capital decreases, due to diminishing returns d. total production increases

b

What is the impact of an increase in current wealth on the consumer's leisure decision in the current period and future period? a. increase in leisure in the current period and decrease in leisure in the future period b. increase in leisure in both the current and future periods c. decrease in leisure in the current period and increase in leisure in the future period d. decrease in leisure in both the current and future periods

b

Which is a correct formula for GDP using the expenditure approach? a. C+S+T+(M-X) b. C+I+G+(X-M) c. C+I+G+(X-M) - T d. C+G+NX+(M-X)

b

Which items enter the consumer's utility function in the consumption and leisure model? a. consumption, leisure, wage, profits, and taxes b. consumption and leisure c. consumption, leisure, and wage d. wage, profits, and taxes

b

Which of the following causes a decrease in current-period labor demand? a. improvement in technology b. decrease in current-period capital stock c. improvement in the marginal product of labor d. increase in investment

b

Which of the following causes an increase in current-period labor demand? a. increase in future capital stock b. improvement in current technology that makes workers more productive c. improvement in future-period technology d. destruction of capital stock

b

Which of the following causes the production possibilities frontier to shift downward? a. an increase in capital stock b. an increase in government expenditures c. a decrease in government expenditures d. an improvement in technology

b

Which of the following is a result of a decrease in government expenditures on the socially optimal outcome? a. increase in production and decrease in leisure b. increase in consumption and a decrease in employment c. increase in employment and increase in consumption d. decrease in consumption and an increase in leisure

b

Which of the following is an accurate description of the consumers' optimization problem? a. consumers choose levels of labor, leisure, and wages, given values for taxes which is outside of their control b. consumers chose levels of utility, given values for consumption and leisure c. consumers chose levels of consumption, given their quantity of labor and wages, which are outside of their control d. consumers chose levels of consumption and leisure, given values for wages, taxes, and profits, which are outside of their control

b

Which of the following is an example of fixed investment? a. an individual consumer buying a new car b. building a new factory to produce shoes c. a business producing and stocking up on inventory to sell later d. buying an existing home

b

Which of the following is an expression of the net present value of lifetime consumption? a. c+w(h-l)+(c'+w'(h-l'))/(1+r) b. c+c'/(1+r) c. c and c' d. c+w(h-l)+pi-t

b

Which of the following is the optimal choice for the social planning problem? a. set the absolute value of the slope of the indifference curve equal to the wage b. set the absolute value of the slope of the production function equal to the absolute value of the slope of the indifference curve c. set the absolute value of the production possibilities frontier equal to the wage d. set the absolute value of the production possibilities frontier equal to the absolute value of the production function

b

Which of the following leads to a rightward shift in investment demand? a. increase in the depreciation rate b. improvement in technology c. decrease in the interest rate d. decrease in capital stock in the future

b

Which of the following leads to an inter temporal substitution of leisure, leading to less leisure in the current period and more leisure in the future? a. increase in the current period wage, but no change in future wage, assuming substitution effects dominate b. increase in the interest rate, assuming substitution effects dominate c. increase in the savings rate, assuming substitution effects dominate d. expectation of lower wage in the future, assuming substitution effects dominate

b

Which of the following leads to an inter temporal substitution of leisure, leading to more leisure in current period and less leisure in the future? a. increase in the current-period wage, but no change in future wage, assuming substitution effects dominate b. expectation of a higher wage in the future, assuming substitution effects dominate c. increase in the interest rate, assuming substitution effects dominate d. decrease in the interest rate, assuming substitution effects dominate

b

Which of the following leads to more economic growth in the human capital growth model? a. more time dedicated to solving slow growth models b. more time dedicated to education and training c. more time dedicated to working instead of leisure d. more time dedicated to building capital

b

Which of the following people are not considered unemployed? a. someone who was laid off because their employer downsized during the recession b. someone who was working, but chose to retire and left their job c. someone who was fired for being stupid d. someone who just graduated college, is looking for work, and is not currently employed

b

Which of the following variables are NOT explicitly included in the standard social planner problem? a. total factor productivity b. public goods that give consumers utility c. utility gained from enjoying leisure d. government expenditures

b

Which of the following would make the slope of the production possibilities frontier in the social planner problem steeper? a. increase in the wage b. increase in the total factor productivity c. decrease in capital stock d. decrease in the wage

b

An increase in wages increases the opportunity cost of leisure, resulting in more leisure and less consumption. Which of the following terms describes this behavior? a. opportunity cost effect b. leisure effect c. substitution effect d. income effect

c

How does a decrease in savings lead to a change in long-run output per worker in the slow growth model? a. a decrease in savings leads to an increase in investment, which leads to an increase in labor, which leads to a decrease in output per worker b. a decrease in savings leads to an increase in consumption, which leads to an increase in output demand, which leads to an increase in output c. a decrease in savings leads to a decrease in investment, which leads to a decrease in capital, which leads to a decrease in output d. a decrease in savings leads to an increase in investment, which leads to an increase in capital, which leads to an increase in output

c

If a country wants to compare its economic output over two different years, which type of GDP should it use? a. neither real nor nominal GDP b. either real or nominal GDP c. real GDP d. nominal GDP

c

Suppose a new management strategy leads to an increase in worker productivity. What would we expect to happen to the labor demand curve? a. labor demand shifts to the left as the marginal product of labor increases b. labor demand shifts to the right as the marginal product of labor decreases c. labor demand shifts to the right as the marginal product of labor increases d. the labor demand curve does not change

c

Suppose there is a decrease in lump-sum taxes in the consumption and leisure model. Which of the following is a direct result? a. inward shift in the budget constraint b. increase in slope of the budget constraint c. outward shift in the budget constraint d. decrease in slope of the budget constraint

c

Suppose there is an increase in wages in the consumption leisure model. What impact does the substitution effect have on the decisions for consumption and leisure? a. decrease in leisure and decrease in consumption b. increase in leisure and decrease in consumption c. decrease in leisure and increase in consumption d. increase in leisure and increase in consumption

c

What is the impact of an increase in interest rates on the consumer's utility maximizing decision for current-period leisure? a. leisure and interest rates are not related to each other in the consumers' utility maximizing decision b. an increase in interest rates decreases the opportunity cost of leisure in terms of future consumption, leading to a decrease in leisure in the present period c. an increase in interest rate increases the opportunity cost of leisure in terms of future consumption, leading to a decrease in leisure in the present period d. an increase in interest rates decreases the opportunity cost of leisure in terms of future consumption, leading to an increase in leisure in the present period

c

Which description represents the slope of the production function? a. the additional cost incurred to produce one more unit of the production good b. the additional output that can be produced with one additional unit of labor c. the additional amount of labor it takes to produce one more unit of the production good d. the additional utility consumers receive by consuming one more unit of the production good

c

Which of the following can cause a decrease in the labor demand curve, and therefore a rightward shift in the output supply? a. an increase in the marginal product of labor b. a decrease in interest rate c. a destruction of capital stock d. an increase in interest rate

c

Which of the following can create a permanent increase in the long-run growth rate in the human capital growth model? a. decrease in government spending on public education b. increase in the population growth rate c. improvement in total factor productivity d. increase in the human capital depreciation rate

c

Which of the following causes a pivot in the budget constraint with current and future consumption, causing it to be steeper? a. increase in current consumption b. decrease in savings c. increase in the interest rate d. decrease in the interest rate

c

Which of the following causes an increase in consumption demand and therefore a rightward shift in aggregate demand? a. increase in interest rates b. improvement in technology c. increase in dividend income resulting from owning stocks in companies d. increase in leisure

c

Which of the following causes the production possibilities frontier to be bowed outward? a. downward sloping demand curves b. production inefficiency c. diminishing marginal product of labor d. diminishing utility

c

Which of the following conditions will cause an unregulated market to be not socially optimal? a. positive externalities b. excessive government expenditures c. positive lump sum taxes d. positive government debt

c

Which of the following is a measure of the aggregate price level? a. growth rate of nominal real GDP b. nominal GDP c. consumer price index d. real GDP

c

Which of the following is the result of an improvement in technology in the socially optimal outcome? a. decrease in consumption and an increase in leisure b. increase in consumption and a decrease in leisure c. increase in consumption and an increase in leisure d. increase in consumption and an indeterminate change in leisure

c

Which of the following leads to an increase in the long-run capital stock per worker in the slow growth model? a. increase in the population growth rate b. decrease in the marginal product of capital c. increase in total factor productivity d. decrease in savings rate

c

Which of the following makes it possible for government to sustainably borrow money every period into the indefinite future? a. no condition will allow a government to borrow money every period forever b. when government budget surpluses in one year offset the government budget deficits from another year c. the long-run growth rate of real GDP is greater than the long-run real interest rate d. the long-run interest rate is greater than the long-run growth rate of real GDP

c

Which of the following people are considered unemployed? a. any person not currently employed b. anyone in the working-age population not working c. someone who is able to work, looking for work, and not employed d. anyone not looking for work

c

Which of the following variable are NOT explicitly included in the standard social planner problem? a. total factor productivity b. utility gained from enjoying leisure c. government investment in infrastructure that can improve the marginal product of capital d. how government expenditures and taxes are related

c

which of the following is an opportunity cost of increasing current-period leisure? a. (1+r) units of future-period consumption b. 1 unit of future-period consumption c. w(1+r) units of future-period consumption d. w units of future-period consumption

c

How does an increase in total factor productivity affect the socially optimal outcomes for consumption and leisure? a. increase in consumption and a decrease in leisure b. decrease in consumption and an increase in leisure c. increase in consumption and an increase in leisure d. increase in consumption and an indeterminate change in leisure

d

If consumers change the way they value consumption versus leisure, deciding that they value consumption more than before and are willing to work more hours to get more consumption, what is the impact on the consumer's utility-maximization problem? a. the budget line and the indifference curve become steeper b. the slope of the indifference curve is, -1*(marginal utility of leisure) / (marginal utility of consumption). When consumers value leisure more than before, this increases the marginal utility of leisure, which increases the absolute value of the slope, and therefore makes the indifference curve flatter. c. the slope of the indifference curve is, -1*(marginal utility of leisure) / (marginal utility of consumption). When consumers value leisure more than before, this increases the marginal utility of leisure, which increases the absolute value of the slope, and therefore makes the indifference curve flatter

d

If the government decreases taxes in the current period, what does Ricardian equivalence predict will be the response to current consumption? a. indeterminate effect on current consumption b. increase in current consumption c. decrease in current consumption d. no effect on current consumption

d

Which of the following is the profit maximizing condition for investment demand? a. set the marginal product of capital equal to the marginal product of labor b. set the marginal product of capital in the future equal to 1 plus the interest rate c. set the marginal product of labor equal to the wage d. set the interest rate equal to the future marginal product of capital minus the depreciation rate

d

Which of the following is the slope of the indifference curve in the consumption and savings model? a. -1*(1+ interest rate) b. -1* (marginal utility of leisure) / (marginal utility of consumption) c. -1* (marginal utility of consumption in the future) / (marginal utility of consumption today) d. -1* (marginal utility of consumption today) / (marginal utility of consumption in the future)

d

Which of the following will result in an increase in the optimal choice for current-period consumption? a. increase in future taxes b. decrease in current-period wage, given substitution effects dominate c. decrease in future wages, given substitution effects dominate d. decrease in interest rates, given substitution effects dominate

d

Which of the following would cause a steeper indifference curve in the consumption and savings model? a. increase in the interest rate b. increase in the marginal utility of future consumption c. increase in the wage d. increase in the marginal utility of current consumption

d

a decrease in future taxes with no change in current taxes has what effect on lifetime wealth? a. decrease in lifetime wealth b. an increase in current lifetime wealth and a decrease in future lifetime wealth c. no change in lifetime wealth d. increase in lifetime wealth

d

a decrease in the interest rate will have which effect on the budget constraint with current and future consumption? a. the budget constraint will shift inward and be parallel to the original budget constraint b. the budget constraint will pivot and become steeper c. the budget constraint will shift outward and be parallel to the original budget constraint d. the budget constraint will pivot and become flatter

d

An increase in future taxes with no change in current taxes has what effect on lifetime wealth? a. decrease in lifetime wealth b. a decrease in current lifetime wealth and an increase in future lifetime wealth c. increase in lifetime wealth d. no change in lifetime wealth

a

How does an increase in savings lead to a change in long-run output per worker in the slow growth model? a. an increase in savings leads to an increase in investment, which leads to an increase in capital, which leads to an increase in output b. an increase in savings leads to a decrease in government expenditures, which leads to a decrease in taxes, which leads to an increase in output c. an increase in savings leads to an increase in investment, which leads to an increase in labor, which leads to an increase in output d. an increase in savings leads to a decrease in consumption, which leads to a decrease in output demand, which leads to a decrease in output

a

If two countries are identical, except for their existing levels of human capital, what does the human capital growth model predict for a long-run outcome? a. the country with the higher level of human capital per worker will converge to a lower level of physical capital per worker b. the country with the higher level of human capital will grow at a faster rate than the country with the lower level of human capital, until the two countries converge to the same level of output per worker c. the country with the lower level of human capital will grow at a faster rate than the country with the higher level of human capital, and the two countries will never converge to the same level of output per worker d. the country with the higher level of human capital will grow at a faster rate than the country with the lower level of human capital, and the two countries will never converge to the same level of output per worker

d

More time dedicated to education and training has what effect in the human capital model? a. higher growth in the labor force and output per worker b. higher savings rate per worker c. higher population growth rate d. higher growth in output per worker

d

Points on the budget constraint to the right and below the endowment point reflect which of the following? a. consumption decisions resulting in the consumer saving in the first-period b. consumption decisions resulting in the consumer neither borrowing nor saving in the first period c. consumption decisions resulting in the consumer saving in the future-period d. consumption decisions resulting in the consumer borrowing in the first period

d

Suppose a country invites international scholars and practitioners to improve training and education programs in a country. What does the human capital growth model predict as consequence? a. an increase in the growth rate of human capital per worker, but no change in the growth rate of output per worker b. an increase in the growth rate of output per worker, but no change in the growth rate of human capital per worker c. no change in the long-run trajectories in human capital per worker or output per worker d. an increase in the growth rate of human capital per worker and the growth rate of the output per worker

d

Suppose consumers' income decreases in the current period, but the change is expected to be temporary, so there is no change in what is expected for future income. How will consumers' decisions change as a result? a. saving and current consumption decrease and future consumption increases b. saving and current consumption will decrease, but there is no change in future consumption c. current consumption decreases, but saving and future consumption stay the same d. saving, current consumption, and future consumption all decrease

d

Suppose one country has a lower long-run level of output per worker than another country? What does the slow growth model predict as a possible reason why this can happen? a. due to diminishing returns, countries with low levels of capital per worker grow at a slower Tate than countries with a high level of capital per worker b. due to diminishing returns, countries with low levels of capital per worker grow at a faster rate than countries with a high level of capital per worker c. the countries have different population sizes d. the countries have different levels of access to implementing technologies

d

Suppose the interest rate increases for someone who is borrowing. Which of the following is true? a. the substitution effect causes an increase in current consumption and the income effect results in an increase in current consumption b. the substitution effect causes an increase in current consumption and the income effect results in a decrease in current consumption c. the substitution effect causes a decrease in current consumption and the income effect results in an increase in current consumption d. the substitution effect causes a decrease in current consumption and the income effect also results in a decrease in current consumption

d

Suppose there is an increase in the profitability of firms. Which of the following is a direct result on the consumers' budget constraint? a. downward shift in the budget constraint b. no effect on consumers' budget constraints c. decrease in slope of the budget constraint d. upward shift in the budget constraint

d

The slow growth model predicts that countries with low levels of capital shock per person will have higher rates of growth than countries with higher levels of capital stock per person? Why is that? a. this is due to the diminishing marginal utility of leisure b. this is due to the negative marginal product of capital c. this is due to the diminishing marginal product of labor d. this is due to diminishing returns to capital

d

What is the impact of a decrease in interest rates on the consumer's utility maximizing decision for current-period leisure? a. a decrease in interest rate increases the opportunity cost of leisure in terms of future consumption, leading to a decrease in leisure in the present period b. a decrease in interest rates decreases the opportunity cost of leisure in terms of future consumption, leading to a decrease in leisure in the present period c. leisure and interest rates are not related to each other in the consumers' utility maximizing decision d. a decrease in interest rates decreases the opportunity cost of leisure in terms of future consumption, leading to an increase in leisure in the present period

d

What is the slope of the production function, plotted with the labor input on the horizontal axis and output on the vertical axis? a. marginal utility of leisure b. marginal product of capital c. marginal utility of leisure/ marginal utility of consumption d. marginal product of labor

d

Which of the following describes the perfectly competitive producer profit maximization problem? a. producers set the wage to maximize profits b. producers change the wage until it is equal tot eh marginal product of labor c. producers chose a combination of wages and employment to maximize profits d. producers chose a quantity of labor, given the market wage

d

Which of the following is a description of the production possibilities frontier in the social planner problem? a. the total quantities of output that can be produced with given amounts of labor b. the total quantities of leisure and labor that can be used with given temporal resources c. the total quantities of government expenditures and consumption that can be spent with given production d. combination of leisure and output that can be enjoyed / produced given the production function

d