Other things equal, as the number of discouraged workers rises in an economy, the gap between potential and actual real GDP will widen
a. True
b. False
Indicate whether the statement is true or false
True
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According to the figure shown, if Joe puts forth high effort, then Sarah should:
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.
A. put forth high effort.
B. put forth low effort.
C. leave school.
D. give an ultimatum.
Suppose a perfectly competitive market is in equilibrium, and then market supply increases. Which of the following would happen?
a. producer surplus would definitely increase and consumer surplus may increase or decrease b. producer surplus would definitely decrease and consumer surplus may increase or decrease c. consumer surplus would definitely decrease and producer surplus may increase or decrease d. consumer surplus would definitely increase and producer surplus may increase or decrease e. producer and consumer surplus would remain unchanged
A downward sloping demand curve can be explained by I. diminishing marginal utility II. diminishing marginal returns III. the substitution effect IV. the income effect
A. I only B. II only C. I and III only D. I and IV only E. I, III and IV only
The life-cycle theory of consumption predicts that when Jason anticipates a higher income in the future, then Jason will
A. consume less and save more in the current period. B. not change the amount of consumption or saving in the current period. C. consume more and save less in the current period. D. consume less and save less in the current period.