A rise in real income will have which of the following effects on money demand?
a. The money demand curve will shift out.
b. The money demand curve will not shift at all.
c. The money demand curve will shift in.
d. Real income has no effect on money demand.
Ans: a. The money demand curve will shift out.
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The efficient quantity of a pure public good occurs when the marginal cost of producing that good equals the
A) marginal benefit to the median voter. B) marginal benefit to each individual. C) sum of all individual marginal benefits. D) sum of all individual marginal benefits divided by the number of voters.
When all currencies are tied directly to gold, then
A) currency exchange rates throughout the world are flexible. B) currency exchange rates throughout the world are fixed. C) the world's stock of gold cannot change. D) the price of each nation's currency in terms of gold is flexible.
which one of the following is most likely to reduce the mobility of labor between jobs?
a. the taxation of unemployment compensation in the same manner as income from other sources b. both b and c above c. legislation relaxing licensing requirements for entry into many occupations d. an increase in the minimum wage
The __________ serve to allocate financial resources among households and firms requiring funds.
Fill in the blank(s) with the appropriate word(s).