In response to an increase in the wage rate, the substitution effect will cause a person to
A) supply fewer hours of labor.
B) supply more hours of labor.
C) supply the same hours of labor.
D) have a backward bend in her labor supply curve.
B
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An increase in the money supply is a discretionary fiscal policy which will increase aggregate demand
Indicate whether the statement is true or false
According to the Coase theorem, under certain conditions the market can internalize externalities.
Answer the following statement true (T) or false (F)
Suppose that a machine costs $10,000 in constant dollars and the real rate of interest is 12 percent
If the machine is expected to increase in price by 2 percent and the rate of depreciation is 5 percent, then the user cost of capital for that machine over one year is equal to ________. A) $150 B) $1,500 C) $10,000 D) $102,500
If the random walk theory is correct, then is there any way to "beat the market"?
What will be an ideal response?