The questions below are based on the table below. Fill in the blank spaces first. 
How many will be employed if the labor market is perfect with a going wage of $18 and the product market is imperfect?
What will be an ideal response?
Compare the MRPL with $18. Three workers will be employed since 19.2 > 18.
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For the U.S. economy, the most important reason for the downward slope of the aggregate-demand curve is the interest-rate effect
a. True b. False Indicate whether the statement is true or false
If financial markets didn't exist:
A. liquidity would diminish and returns would be lower. B. liquidity would diminish, reducing the flow of funds between borrowers and savers. C. required returns would be lower since fewer instruments would trade. D. more funds would flow directly between borrowers and savers.
A friend of yours tells you she has an idea for a new product. She believes that once the prototype is built she can sell the rights to the product for $250,000. The problem is she needs $20,000 to build the prototype and she only has $5,000. She asks you to invest $15,000 in the idea and she will give you 75% of whatever amount she obtains when she sells the rights. You have the money available but should be reluctant to provide the money. Why?
What will be an ideal response?
Which of the following is an important aspect of rational self-interest?
a. considering future costs b. considering past costs c. considering future causes d. considering past causes