In the above figure, a minimum wage will not change the unemployment rate if it is set at
A) $6.00.
B) $9.00.
C) $12.00.
D) Both B and C are correct because any wage rate that exceeds $9 per hour has no effect on the unemployment rate.
E) None of the above because the minimum wage always affects the unemployment rate.
A
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The following table provides data for an economy in a certain year.Consumption expenditures1,000Imports600Government purchases of goods and services700Construction of new homes and apartments500Sales of existing homes and apartments600Exports500Government payments to retirees200Household purchases of durable goods300Beginning-of-year inventory500End-of-year inventory600Business fixed investment300Given the data in the table, compute the government purchases component of GDP.
A. 700 B. 900 C. 500 D. 200
The present value formula makes it apparent that:
A) a decline in the interest rate will cause a decision maker to weigh recent period returns relatively more heavily than before the decline. B) an increase in the interest rate will cause a decision maker to weigh distant (or future) returns relatively more heavily than before the increase. C) the present value of a fixed sum decreases as the time until it is to be paid increases. D) all of the above E) both A and C.
In the game in Scenario 13.14,
A) R's dominant strategy is Q = 100; C has none. B) C's dominant strategy is Q = 100; R has none. C) Q = 100 is a dominant strategy for both R and C. D) Q = 100 dominates Q = 150 for both firms. E) the dominant strategy for both players is to choose the same level of output, so long as it is not 150.
If the reserve ratio is 0.25, the money multiplier is:
A. 20.0. B. 25.0. C. 4.0. D. 5.0.