8)
Refer to the above diagrams that show identical marginal utility from income curves for
Singer and Catalano. If a given income of $20,000 is initially distributed so that Singer
receives $15,000 and Catalano $5,000, the marginal utility:
A.of the last dollar of income will be greater for Catalano than for Singer.
B.derived from the last dollar will not be comparable as between the two income
receivers.
C.of the last dollar of income will be the same for both Singer and Catalano.
D.of the last dollar of income will be greater for Singer than for Catalano.
9) Suppose the government purposely changes the economy’s standardized budget from
a deficit of 3 percent of real GDP to a surplus of 1 percent of real GDP. The government
is engaging in a(n):
A.expansionary fiscal policy.
B.contractionary fiscal policy.
C.neutral fiscal policy.
D.high-interest rate policy.
10) skeptics of the recent productivity acceleration say that:
a.it is too early to predict whether recent boosts in u.s. productivity are permanent or
transitory.
b.global capitalism is a media fiction, not an economic reality.
c.the growth of service productivity is severely understated.
d. many of the factors that slowed productivity in the 1973-1995 period have now
reversed themselves.
11) By reducing labor turnover, unions may increase productivity because a lower
turnover rate: