If the single-input producer choice set is convex, the marginal product of labor curve must have a negative slope that is getting steeper with increases in labor input.
Answer the following statement true (T) or false (F)
False
Rationale: It must be downward sloping -- but it could be increasingly shallow as labor input increases. As long as it is downward sloping, the slope of the production frontier is getting shallower -- giving us the convexity of the producer choice set.
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With a proportional tax
A) a poor household pays a larger percentage of its income in taxes than a rich one. B) a rich household pays a larger percentage of its income in taxes than a poor one. C) all households pay the same total amount of tax. D) all households pay the same percentage of their income as taxes.
All of the following are reasons for the downward-sloping aggregate demand curve except
A) as the price level decreases, the quantity demanded of real GDP decreases because goods and services are more expensive. B) as the price level increases, the real value of household wealth declines, reducing consumption. C) a higher price level increases the demand for money, causing an increase in the interest rate which reduces spending on investment goods and consumer durables. D) if the price level rises in a country relative to price levels in other countries, net exports will decrease in the original country.