3 things that can cause macro failure:
What will be an ideal response?
1) aggregate demand is too little
2) aggregate demand is too great
3) aggregate demand is too unstable
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Dan has a car valued at $10,000 that gives him a utility of 50 units. There is a 10 percent chance that he will have an accident that will make his car worthless, in which case his utility will be zero
His utility from a wealth of $7,000 is 45 units. The maximum amount Dan will be willing to pay for car insurance is A) $1,000. B) $3,000. C) $7,000. D) zero.
Suppose an economy has 90,000 employed persons and 10,000 unemployed persons, the unemployment rate is
a. 11.1% b. 10.0% c. 5.6% d. 12.5% e. 9.1%
The "cap" in cap-and-trade refers to the
A. name of a specific piece of equipment that is used to reduce air pollution. B. cap on the number of pollution permits that any one business may use. C. captain who oversees the reduction of pollution by businesses. D. cap on pollution implied by the limited number of permits issued.
In 2011, the U.S. unionization rate was:
A. 5.5 percent, down by nearly one-half of the rate in the mid-1950s. B. 14.8 percent, up by about one-fourth of the rate in the mid-1950s. C. 11.8 percent, down by more than one-half of the rate in the mid-1950s. D. 21.2 percent, down by 4 percentage points from the mid-1950s.