Most economists believe that money neutrality
a. does not hold in the short run.
b. does not hold in the long run.
c. does not hold in either the short run or long run.
d. holds in the short run and the long run.
a
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Which of the following is a CORRECT statement about markets for prohibited goods?
A) Penalizing sellers of an illegal good decreases supply and penalizing buyers decreases demand. B) Penalizing either buyers or sellers of an illegal good decreases the quantity bought. C) Taxing a good at a sufficiently high rate can achieve the same consumption level as prohibition. D) All of the above are correct statements.
In which of the following cases is the employment relationship between the employee and the employer likely to resemble a spot market transaction?
a. When hospitals hire clerical staff b. When a university hires members of faculty c. When a corporate law firm hires lawyers d. When unskilled workers are hired on a day-to-day basis for odd jobs
A good is considered normal when its income elasticity of demand is ___ and inferior when the its income elasticity of demand is ___
a. Greater than zero, less than zero. b. Less than zero, greater than zero. c. Greater than one, less than one. d. Less than one, greater than one.
On average, persons with more education tend to draw Social Security benefits for a
a. longer period of time than average b. shorter period of time than average c. period of time that is comparable to the U.S. average d. longer period of time if they have a master's degree but a shorter period of time if they have a Ph.D.