When people perceive a net benefit to a course of action, they will ______.
a. avoid that activity
b. pursue the opportunity
c. recalculate the costs
d. look for another option
b. pursue the opportunity
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Employees at Bank of America are good at providing banking services and workers at Ben & Jerry's are good at making ice cream
If some bankers are moved to making ice cream, we get a small increase in the amount of ice cream produced and a large decrease in the amount of banking services provided. If the PPF has banking services on the vertical axis and ice cream on the horizontal axis, the effect of the change reflects A) decreasing opportunity costs. B) a bowed out PPF for banking services and ice cream. C) production efficiency. D) a shift to a flatter PPF.
As part of the "wealth channel of monetary policy," a lower money supply __________ bond prices and thus __________ spending
A) raises; raises consumption B) raises; raises investment C) lowers; lowers consumption D) lowers; lowers investment
For the average living standard of a nation to rise, the only thing that needs to happen is for nominal GDP to increase faster than the price level
a. True b. False
High-wage workers are
a. more likely than low-wage workers to supply more labor when the wage rate rises. b. about as likely as low-wage workers to supply more labor when the wage rate rises. c. less likely than low-wage workers to supply more labor when the wage rate rises. d. The available evidence does not indicate how high-wage workers and low-wage workers differ in responding to changes in the wage rate.