Recall the Application about the incentives to install rooftop solar panels to answer the following question(s).According to the Application, a 10 percent increase in the tax credits for solar panels results in an increase in the number of households that install solar panels by 7.6 percent. The increase in sales due to this subsidy is an example of which element of the economic way of thinking?

A. responding to incentives
B. isolating variables
C. thinking at the margin
D. using assumptions to simplify

Answer: A

Economics

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An example of Friedman's k-percent rule is

A) "do not change the growth rate of the quantity of money." B) "every time GDP decreases, decrease the growth rate of the quantity of money." C) "set the growth rate of the quantity money equal to the unemployment rate." D) "every time GDP decreases, increase the growth rate of the quantity of money." E) "use all information available to determine the growth rate of the quantity of money each time GDP changes."

Economics

Assume that after the fifth worker, each additional worker a firm hires is less productive than the previous worker. Based on this information, we can conclude that beyond the fifth worker, the average product of labor will:

A) increase. B) stay the same. C) decrease. D) cannot be determined without additional information.

Economics