Raf is considering buying a new car. Which of the following would the average economist believe is most influential in determining whether or not he decides to make the purchase?
a. how much remains on the mortgage to his home
b. how much income remains after he has paid taxes and all required debts
c. how much total credit remains on his credit cards
d. how much his home would sell for if he were to put it on the market today
b. how much income remains after he has paid taxes and all required debts
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Explain for each event whether it changes the quantity of real GDP supplied, short-run aggregate supply, long-run aggregate supply, or a combination of them
What will be an ideal response?
A worker's contribution to the firm's revenue is measured directly by the worker's: a. value of marginal product
b. marginal product multiplied by his/her wage. c. marginal product minus his/her wage. d. contribution to total output.
As the baby boom generation, born during 1946 through 1960, reaches retirement age during the 2011 through 2030 period, the number of workers per Social Security beneficiary is expected to
a. increase to five. b. remain constant at approximately seven. c. decline to approximately five. d. decline to approximately two.
Suppose the market for home-grown peppers in the town of Smallville is comprised of two farmers. Suppose the two farmers try to collude. Explain why their collusion might not be successful