Which of the following items is most likely to be an inferior good?
a. bus tickets
b. airline tickets
c. housing
d. stereo equipment
e. home computers
A
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New classical macroeconomists believe that
a. markets clear each and every period. b. the labor market does not clear. c. individuals are locked into money wage constraints. d. individuals face market constraints in their ability to act in their own self-interest. e. none of the above.
An increase in currency in circulation would ____ M1 and ____ M2. a. increase; increase
b. not change; increase. c. decrease; decrease. d. not change; decrease.
Solutions to structural stagnation require difficult supply-side structural changes to accompany any demand-side stimulus if they are to be successful in reducing unemployment significantly.
Answer the following statement true (T) or false (F)
If total cost is $1,000 when output is zero, and total cost is $1,200 when output is one, and total cost is $1,500 when output is two, then which of the following is true?
A. Total fixed cost is $1,500. B. The marginal cost of producing the first unit of output is $1,200. C. The marginal cost of producing the second unit of output is $300. D. The average fixed cost is $750 when two units of output are produced.