Abby's reservation price for working in a risky job is $5 per hour while Rudy's reservation price for working in a risky job is $8 per hour. Characterize Abby and Rudy's job selections if safe jobs pay $12 per hour and risky jobs pay $18 per hour.
A. Rudy works a risky job while Abby does not care which type of job she works.
B. Abby works a safe job while Rudy works a risky job.
C. Abby and Rudy both work risky jobs.
D. Abby works a risky job while Rudy works a safe job.
E. Abby and Rudy both work a safe job.
Answer: D
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Taxes that enhance economic efficiency will have a better chance of passing through Congress than less efficient tax reforms. _____
a. This is probably enough to produce an efficient tax system b. This is not enough to produce an efficient tax system c. This shows special interests have no impact. d. This shows that many government officials act in the public interest.
Consider a consumer who purchases two goods, X and Y. If the price of good Y falls, then the substitution effect by itself will
a. cause the consumer to buy more of good Y and less of good X. b. cause the consumer to buy more of good X and less of good Y. c. not affect the amount of goods X and Y that the consumer buys. d. result in an upward-sloping demand for good Y if the substitution effect is positive.
Which of the following is an economic activity:
A. Following the stock market B. Reading a bank statement C. Balancing a checkbook D. Purchasing a candy bar
Adding globalization and large trade deficits to the standard AS/AD model creates:
A. increased domestic production and consumption. B. increased domestic production and reduced consumption. C. reduced domestic production and consumption. D. decreased domestic production and increased consumption.