If the interest rate increases from 5 percent to 7 percent, the present value of a future payment
A) rises.
B) falls.
C) is unaffected.
D) might either rise or fall.
B
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RBC theory leads to ________ government macro-stabilization policy, due to the theory's assumption of ________
A) a rationale for, slow wage and price adjustment B) a rationale for, continuous market-clearing C) a rejection of, slow wage and price adjustment D) a rejection of, continuous market-clearing
Economic reasoning suggests that individuals should spend little time learning about election candidates and other electoral issues because:
a. marginal benefit is zero. b. the information cost is too high compared to the benefit to the individual. c. information is easily available. d. the result of the election are unlikely to have a serious impact on a market-driven economy.
Which of the following statements is not correct?
a. If Fiona gets a higher wage and works more, the substitution effect is greater than the income effect for her. b. If Miguel experiences a wage decrease and works less, the income effect is greater than the substitution effect for him. c. If the substitution effect is greater than the income effect, the labor-supply curve is upward sloping. d. If the income effect is greater than the substitution effect, the labor-supply curve is downward sloping.
Assume the total utilities corresponding to the first four units of a product consumed are 8, 12, 14, 15, respectively. The marginal utility of the third unit consumed is:
A. 2. B. 14. C. 4. D. 34.