The economic return to entrepreneurship is called:
a. Rent.
b. Wages.
c. Profits.
d. Interest.
e. None of the above.
.C
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When the Federal Reserve raises the federal funds rate, the quantity of reserves ________, the quantity of money ________, and the quantity of loans ________
A) increases; increases; increases B) decreases; decreases; decreases C) increases; increases; decreases D) decreases; decreases; does not change E) decreases; does not change; does not change
According to the Tiebout hypothesis,
A. an efficient mix of public goods is produced when local land/housing prices and taxes reflect consumer preferences. B. under certain conditions, when externalities are present, private parties can arrive at the efficient solution without government involvement. C. a good or service is usually so costly that its provision generally does not depend on whether any single person pays. D. an optimal (or most efficient) level of output exists for every public good.
Suppose the probability of an employee being caught shirking, q, is a function of the employer's monitoring, M, such that q = M/100
If workers must put up a $1,000 bond and the gain to each worker from shirking is $100, what is the employer's optimal level of monitoring that is just sufficient to discourage shirking?
Jose consumes wallets (q1 ) and a composite of other goods (q2 ). The price of wallets is p1 and the price of other goods is p2 = 1
Jose's utility from wallets depends also on his income—with a higher income, he values a wallet more because he has more to put inside it! His utility is given by the equation U(q1,q2 ) = q1Yq2 Derive Jose's demand for wallets.