The following simple model is used to determine the annual savings of an individual on the basis of his annual income and education.
Savings = ?0 + 
0 Edu + ?1Inc + u
The variable ‘Edu' takes a value of 1 if the person is educated and the variable ‘Inc' measures the income of the individual.
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Refer to the model above. The benchmark group in this model is _____.
A. the group of educated people
B. the group of uneducated people
C. the group of individuals with a high income
D. the group of individuals with a low income
Answer: B
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The consolidated balance sheet of the all banks in Macroland is presented below: AssetsLiabilitiesCurrency$1,000Deposits$1,000Loans$ 900 Based on this balance sheet the banking system of Macroland can be described as a(n) ________ banking system.
A. 100-percent-reserve B. barter C. fractional-reserve D. government-insured
The figure above shows the demand for fruit snacks. Which movement reflects an increase in income if fruit snacks are a normal good?
A) from point a to point e B) from point a to point b C) from point a to point c D) from point a to point d
Households' labor supply decisions are influenced by all of the following except _______
A. the opportunity cost of taking leisure and not working B. the after-tax wage rate C. unemployment benefits D. the number of full-time jobs available
The typical welfare family would be
A. A single woman with 6 or 8 children. B. A single woman with 1 or 2 children. C. A couple about 70-80 years old. D. A childless male in his 30s or 40s.