If you overhear a group of people talking about their plans to save for their retirement and one of them says that it causes them to save less because, as they reason it, "the government is saving for me," you would attribute this to the
A. asset substitution effect.
B. induced retirement effect.
C. slovenly effect.
D. bequest effect.
Answer: A
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The marginal utility of a third skirt is
A) three times the average utility of the three skirts. B) three skirts times the price of a skirt. C) the total utility of three skirts divided by three. D) the change in total utility from the third skirt.
Counting discouraged workers as unemployed would
A) lower the measured unemployment rate. B) raise the measured unemployment rate. C) raise the natural unemployment rate. D) raise the full employment rate. E) not change the measured unemployment rate.
Some economists believe that public schools would improve if they were subjected to competition. Discuss the pros and cons of this idea.
What will be an ideal response?
Which of the following will increase labor? productivity?
What will be an ideal response?