As the real interest rate in the domestic loanable funds market increases,
a. the cost of purchasing goods and services during the current period will decline.
b. the net inflow of capital from abroad will increase.
c. the inflationary premium will rise, and the money rate of interest will decline.
d. the inflationary premium will fall, and the money rate of interest will rise.
B
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The market for unskilled labor is illustrated in the figure above. If a minimum wage of $5 per hour is imposed, an employer who breaks the law will be able to find a worker who is willing to work for
A) less than or equal to $4 per hour. B) between $4 and $5 per hour. C) more than or equal to $5 per hour. D) None of the above because workers are not willing to supply labor for wage rates less than $5 per hour.
According to William Safire, “helpfulism” is basically protectionism.
Answer the following statement true (T) or false (F)
Recall the Application about setting the price of tickets for Major League Baseball games to answer the following question(s).According to the Application, the marginal revenue from ticket sales for a typical Major League Baseball team is:
A. positive. B. zero. C. negative. D. infinity.
Suppose Adam Einberg pays $100 for a ticket to a new Broadway play and $100 was the maximum price he was willing to pay. On the day of the performance of the play Adam refuses to sell the ticket for $150
How would behavioral economists explain Adam's refusal to sell his ticket? A) Adam's tastes had changed from the time he bought the ticket to the time of the performance of the play. B) Adam's income probably increased between the time he bought the ticket and the day of the play's performance. C) The endowment effect explains Adam's actions. People like Adam seem to value things that they have more than the things they do not have. D) When Adam bought the ticket he was being unrealistic about his future behavior.