Which of the following fiscal programs is least likely to affect aggregate demand?

Which of the following fiscal programs is least likely to affect aggregate demand?
 a. Defense spending
 b. Road construction
 c. Grants for scientific research and development
  d. Social Security for women
 e. Government purchases of labor

QUESTION 2

If a firm's marginal cost exceeds its average cost, then its average cost must be rising.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 3

Which of the following would be excluded from the gross domestic product (GDP)?
 a. The mayor of a city hiring more workers to improve the sanitation of the city
 b. The sale of mobiles decreasing significantly
 c. The government reducing welfare benefits
 d. A homemaker spending 20 taking the family out to lunch instead of cooking food ,
  e. A consumer having his pickup truck tuned up at the local garage

QUESTION 4

Which of the following would be a human capital investment?
 a. On-the-job training programs.
  b. Health care programs.
  c. Formal education.
  d. All of these.

QUESTION 5

Which of the following is most likely to close a recessionary gap in the economy?
 a. A decrease in the expenditure on infrastructure
 b. An increase in the income tax rate
 c. An increase in the rate of foreign exchange
 d. A decrease in money supply
 e. An increase in the compensation for government employees

QUESTION 6

The law of diminishing returns causes a firm's short-run marginal cost curve to be s-shaped.
 a. True
  b. False
  Indicate whether the statement is true or false