Which of the following will lead to an increase in the firm's short-run demand for labor?
A. an improvement in labor productivity
B. a decrease in price of the final product's substitute good
C. a decrease in the price of the final product
D. a decrease in the number of buyers for the final product
Answer: A
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What are the two important properties of all models?
What will be an ideal response?
In Monetarist theory, the demand to hold money is:
a. The same as the demand to borrow real loanable funds. b. Upward sloping because as the real risk-free interest rate rises, people want to hold more money. c. Rather unstable because it changes greatly with movements in the real risk-free interest rate. d. Neutral, in the sense that it is independent from all macroeconomic variables. e. Rather stable and does not change greatly with movements in the real risk-free interest rate.
Monetary policy refers to
A) actions taken by banks and other financial institutions regarding their approaches to lending, account management, etc. B) changes in the money supply to achieve particular economic goals. C) changes in government expenditures and taxation to achieve particular economic goals. D) the change in private expenditures that occurs as a consequence of changes in the money supply.
The Lorenz curve is a geometric representation of
A. the difference between pre-tax and post-tax income. B. the profile of earnings for a "typical" family over time. C. the distribution of income. D. the standard of living experienced by the poor in a country.