Which of the following changes could have shifted AE1 to AE2?
a. an overall increase in income
b. an overall decrease in income
c. in increase in the interest rate
d. an increase in consumer confidence
d. an increase in consumer confidence
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Which of the following is a likely outcome of rent ceilings?
A) a surplus of rent-controlled housing B) waiting lists of potential renters of rent-controlled housing C) construction of more rental housing D) black market rents below the ceiling rent
If a product which costs $8 is sold at $10, the mark-up is
A) $2. B) 25%. C) 20%. D) None of the above
Refer to Table 5.1. Expected income for the first year is
A) highest in accounting. B) highest in mathematics. C) higher in English than in mathematics. D) higher in political science than in economics. E) highest in economics.
There are two employers in Bucolic that hire people who do not have a high school degree: a grocery store and a hardware store. The grocery store pays $10 per hour and the hardware store pays $12 per hour. People who work at either store can work as many hours as they want at those wages. Assume that it takes two hours to interview for a job. Lee works at the grocery store, but would like to work at the hardware store. If Lee interviews at the hardware store, there is a 10% probability of being hired. Assume that Lee is risk-neutral. In terms of foregone earnings, what does it cost Lee to spending two hours interviewing for a job at the hardware store?
A. $2 B. $10 C. $20 D. 0