Which of the following will increase economic freedom?
a. institutions and policies supportive of voluntary exchange
b. high tariff rates
c. high taxes
d. rapid and unpredictable inflation
e. all of the above
A
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The "New Economy", a period marked by major technological change, low inflation, low unemployment, and rapidly growing productivity characterized
A. the 1920s. B. the 1960s. C. the 1990s. D. All of the decades listed.
The above table shows Homer's marginal utility from consuming various quantities of chocolate chip cookies and cake. The price of cookies is $2 per pound, the price of cake is $2 per slice and Homer has $12 to spend on cookies and cake
Homer will consume ________ of cookies and ________ of cake. A) 1 pound; 5 slices B) 2 pounds; 4 slices C) 3 pounds; 3 slices D) 5 pounds; 2 slices
If government rules and regulations hurt free trade then
A) one might find higher levels of investment. B) one might find more corruption. C) one might find positive externalities. D) all of these choices
The market wage rate for a car mechanic is $30 per week. Peter, who owns a garage, is in urgent need of a mechanic to head his existing employees. He is willing to hire Alex and pay $8 extra in order to make sure that Alex puts in his best efforts. If Alex accepts the job, which of the following statements will be true?
a. There is no disutility of hard work for Alex as his pay exceeds the market wage rate. b. Alex has no incentive to put in his best efforts on this job. c. Alex's disutility of extra effort in this new job is less than the utility from extra pay. d. Peter's benefit from hiring Alex will be limited as he is paying above the market wage rate.