If the substitution effect of a lowered price is partly or fully offset by the income effect, we know that the good in question is a(n)
a. complementary good
b. inferior good
c. luxury good
d. normal good
e. substitute good
B
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Consider the above figure. If the aggregate demand went from AD2 to AD3, our nation would have gone from
A) a recessionary gap to an inflationary ga
On your first day at work, your boss tells you to call the bank and get the bid and the ask for British pounds. Having just returned from studying in London, you know that the exchange rate should be somewhere around 1.25
You call the number and the lady says "579 and 585." What does that mean? A) She didn't understand your question. B) The bid is 0.579 and the ask is 0.585. C) The ask is 0.579 and the bid is 0.585 D) The bid is 1.2579 and the ask is 1.2585.
In the endogenous growth model presented in the text, suppose that u represents the fraction of time spent working (as opposed to accumulating human capital) and b represents the efficiency of human capital accumulation
The growth rate of human capital equals A) u(1 - b) - 1. B) 1 + b(1 - u). C) (1 + b)(1 - u). D) b(1 - u) - 1.
What impact do you think that the movement of women from working in the household to working in the market has had on GDP? Why? Do you think that this points to a problem with GDP?
What will be an ideal response?