Which of the following is an example of microeconomic analysis?
a. impact of taxation on national income
b. rate of increase in the national debt
c. relationship between inflation and interest rates set by the Federal Reserve
d. none of the above
d
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Which of the following would be expected to decrease the demand for money in the U.S.?
A. The economy enters a boom period. B. Grocery stores begin to accept credit cards in payment. C. Political instability increases dramatically in developing nations. D. Households fear increasing computer glitches will severely limit their ability to use ATMs.
Employees at the university have negotiated a 5 percent increase in wages for the next year, based on their inflation expectations. If inflation is actually 6 percent over the next year, which of the following will occur?
A) Inflation will be 5 percent the following year. B) Real wages for university employees will fall. C) The increase in inflation is expected. D) Unemployment of university employees will rise.
An author who writes newspaper columns for $75 each is deciding whether to purchase a personal computer with a laser printer. She figures she'd be able to write two more columns per month than she could on her typewriter. She should
a. buy the computer if the monthly payment is less than $300 b. buy the computer regardless of its price c. not buy the computer if the monthly payment is greater than $75 d. not buy the computer regardless of the price e. buy the computer if the monthly payment is less than $150
Suppose that the market for haircuts in a community is perfectly competitive and that the market is initially in long-run equilibrium. Subsequently, an increase in population increases the demand for haircuts. In the short run, we expect that the typical firm is likely to begin:
Select one: A. incurring an economic loss. B. experiencing neither an economic profit nor an economic loss. C. earning an economic profit. D. experiencing no change in its economic profit.