A decrease in taxes (when Ricardian equivalence does not hold) causes the real interest rate to ________ and the price level to ________ in general equilibrium.
A. rise; fall
B. fall; rise
C. rise; rise
D. fall; fall
Answer: C
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Which of the following is issued to an investor to provide protection from having the invention copied or stolen for 20 years?
A) a license B) a natural monopoly C) a patent D) a certificate of convenience
A Price Ceiling is the;
(a) Minimum price consumers are willing to pay for a product. (b) Minimum price usually set by government that sellers must charge for a product. (c) Maximum price usually set by government that sellers must charge for a product. (d) None of the above.
The LDCs have relatively ____ rates of economic growth and relatively ____ rates of population growth.
Fill in the blank(s) with the appropriate word(s).
Exhibit 11-10 Labor and wage rate data Labor Wage 6 $12 7 13 8 14 9 15 10 16 In Exhibit 11-10, the total wage cost of hiring 7 employees is:
A. $15. B. $91. C. $13. D. $19. E. $112.