Transfer payments are:
A. spending that transfers resources from the government to individuals.
B. when individuals transfer stock ownership in lieu of payment with cash or other liquid assets.
C. when individuals transfer cash for payments of a good or service.
D. payments that individuals make to the government.
Answer: A
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Refer to Table 2-4. Which of the following statements is true?
A) George has an absolute advantage in both tasks. B) Jack has an absolute advantage in both tasks. C) Jack has an absolute advantage in lawn mowing and George in garden cultivating. D) Jack has an absolute advantage in garden cultivating and George in lawn mowing.
The share of ________ goods in employment is ________ across the country. The share of ________ goods in employment is ________ across the country
A) nontraded; uniform; traded; variable B) traded; uniform; nontraded; variable C) durable; uniform; nondurable; variable D) nondurable; uniform; durable; variable E) nontraded; variable; traded; uniform
Assume a consumer is currently purchasing a combination of goods, X and Y, that maximizes her utility given her budget constraint, i.e., MRSX,Y = PX/PY. Now assume that there is a decrease in the price of Y
In this case, to once again maximize her utility, the consumer will want to adjust her purchases of X and Y such that: A) the marginal rate of substitution of X for Y, i.e., MRSX,Y, decreases. B) the marginal rate of substitution of X for Y, i.e., MRSX,Y, stays the same. C) the marginal rate of substitution of X for Y, i.e., MRSX,Y, increases. D) none of the above. The consumer will continue to maximize her utility after the price change by continuing to consume the same combination of X and Y.
Cyclical unemployment
a. is short-term joblessness experienced by those who are between jobs b. is joblessness created by a mismatch between available jobs and workers' skills c. is joblessness related to regular seasonal events such as holidays or weather changes d. is joblessness caused entirely by microeconomic forces e. does not exist when the economy is at full employment