Select the normative statement that completes the following sentence: If the minimum wage is raised:
A. cost per unit of output will rise.
B. workers will gain their rightful share of total income.
C. the rate of inflation will increase.
D. profits will fall.
Answer: B
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Indicate whether the statement is true or false
An speculator who buys a fifty-year corporate bond
A) must be expecting to still be alive in fifty years. B) is subject to substantial reinvestment risk. C) is probably expecting market interest rates to increase in the future. D) is probably expecting market interest rates to decrease in the future.
Game theory is:
A. the study of how people behave strategically under different circumstances. B. used to predict the winners of only certain types of strategic games. C. used to evaluate the microeconomic choices that involve probabilities of different outcomes. D. the study of games of chance like solitaire or betting on horse races.
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A. increases the money multiplier and increases the money supply. B. reduces the money multiplier and reduces the money supply. C. increases the money multiplier and reduces the money supply. D. none of these.