Which of the following groups is most hurt by unanticipated inflation?
A. Workers with cost of living adjustment clauses in their labor contracts.
B. Social Security recipients.
C. Workers who sign new work agreements every day.
D. Wealthy people who hold much cash in their wall safes.
D. Wealthy people who hold much cash in their wall safes.
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When the maximizing actions of two economic agents are not aligned, these agents face a(n):
A) coordination problem. B) incentive problem. C) correspondence problem. D) objective problem.
Refer to Figure 8.3. Holding other variables constant, if the economy is originally in equilibrium at the intersection of D2 and S2 and households increase their preference for leisure over labor, the economy would move to the new equilibrium point
represented by A) w1 and L2. B) w3 and L2. C) w2 and L2. D) w2 and L1.
Developing countries are damaged by dead capital because
A) it replaces too many workers, creating unemployment. B) resulting inefficiencies greatly reduce the rate of return on investment. C) it must be sold as scrap. D) none of the above.
Status-quo bias is:
A. a type of mental barrier to saving. B. when people actively make decisions to change something, even if it is fairly difficult to do so. C. not overcome in the SMarT program because saving is the default option. D. when people have a negative view on the status quo.