When an effective price ceiling is in place
A. on average the net change in consumer surplus is zero.
B. some consumers are better off and others are worse off.
C. every consumer is better off.
D. every consumer is worse off.
Answer: B
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In the two-period model with asymmetric information, a one-unit increase in the real rate of interest on bank deposits
A) causes the real loan interest rate to increase by more than one unit. B) causes the real loan interest rate to increase by less than one unit. C) cause the real loan interest rate to decrease by less than one unit. D) causes the real loan interest rate to decrease by more than one unit.
Which of the following is NOT considered a determinant of income differences?
A) productivity B) age C) discrimination D) equity or fairness
Which of the following explains why economists may disagree over positive issues?
a. They have different beliefs and values. b. They examine the same data to draw their conclusions. c. They need to disagree in order to publish their research findings. d. They often employ different models and statistical techniques when examining data. e. Some work only on microeconomic issues, while others focus exclusively on macroeconomic issues.
If the government increases its military spending, the aggregate demand curve shifts to the right
Indicate whether the statement is true or false