When John F. Kennedy said, "A rising tide lifts all boats," to what was he referring?
a. With government intervention, all citizens receive a greater allocation of resources.
b. With market forces working independently, everyone receives an equitable share of resources.
c. With economic growth, more families are pushed above the poverty line.
d. None of the above are correct.
c
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If a 10 percent price increase generates a 10 percent decrease in quantity demanded, then demand is
A) unit elastic. B) elastic. C) perfectly inelastic. D) perfectly elastic. E) inelastic.
If the price level doubles, the
A) nominal demand for money doubles. B) nominal demand for money drops by half. C) real demand for money drops by half. D) real demand for money doubles.
Strikebreakers
A) can reduce the bargaining power of a union. B) can strengthen the bargaining power of a union. C) make a union negotiation invalid. D) make a strike permanent.
Suppose a family has saved enough for a 10 day vacation (the only one they will be able to take for 10 years) and has a utility function U = V1/2 (where V is the number of healthy vacation days they experience). Suppose they are not a particularly healthy family and the probability that someone will have a vacation ruining illness (V = 0) is 30%. What is the expected value of V?
a. 10 b. 7 c. 3 d. 0