The permanent-income hypothesis seeks primarily to explain the
A) observed long-term constancy of the saving ratio.
B) observed variation in the short-term saving ratio.
C) unimportance of transitory income changes.
D) All of the above are correct.
D
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According to the case for analysis (Demand and Supply in the Copper Industry) in the text, all of the following can lead to a decline in the price of copper except:
A) steady production uninterrupted by labor strikes or natural disasters. B) substitution away from copper to other materials such as aluminum and plastic. C) an increase in mining of higher grade materials. D) a surge in demand from foreign importers.
If tax rates were 100 percent, tax revenues would be _____
a. maximized b. minimized c. indeterminate d. the same if they were 50 percent
A customer service representative in Nebraska who loses his job because the company relocated the customer service department to India represents an example of
A. structural unemployment. B. cyclical unemployment. C. frictional unemployment. D. seasonal unemployment.
Refer to the information provided in Figure 28.1 below to answer the question(s) that follow.
Figure 28.1Refer to Figure 28.1. At wage rate $6, there is a ________ of labor equal to ________ million people.
A. shortage; 180 B. surplus; 180 C. surplus; 60 D. shortage; 60