All of the following are economic functions of the government EXCEPT
A) providing a legal system.
B) determining the wage rate for most jobs.
C) promoting competition in the market.
D) providing public goods.
Answer: B
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If the real interest rate is 3 percent and the inflation rate is 2 percent, what is the nominal interest rate?
What will be an ideal response?
Increases in the marginal product of labor can be attributed to:
A) specialization of workers. B) depreciation of capital. C) diminishing returns to workers. D) congestion and thus better use of work space.
One reason the housing bubble occurred is because the:
A. securitization of mortgages meant more mortgages were low-risk, attracting investors. B. herd instinct caused everyone to stop buying homes. C. recency effect affected people's perceptions of home values. D. All of these statements are true.
Which of the following is NOT a true statement about the Lorenz curve?
A) The Lorenz curve includes both money income and income in kind. B) The Lorenz curve does not include unreported income obtained from the underground economy. C) The Lorenz curve does not consider different sizes of households. D) The Lorenz curve does not consider age differences among wage earners.