When a production function is graphed with Real GDP on the vertical axis and labor on the horizontal axis, a rise in labor ________________________, and a rise in capital __________________
A) shifts the production function upward; also shifts the production function upward
B) shifts the production function downward; shifts the production function upward
C) moves us up along a given production function; shifts the production function upward
D) shifts the production function upward; moves us up along a given production function
C
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The Social Security tax is regressive because:
A. The Social Security tax rate applied does not rise with the salary level B. No Social Security tax is collected for incomes in excess of a "cap" income level C. Each individual must pay a set percentage of his or her income in Social Security taxes D. As income increases, the Social Security tax rate increases at a decreasing rate
Which of the following is NOT a tool used by the Fed to implement monetary policy?
A. Printing Federal Reserve notes and minting coins B. The discount rate C. The reserve requirement D. Open market operations