When people donate money to a charity, they behave
A. in a way that only makes themselves worse off.
B. rationally if the act gives them satisfaction.
C. in an unpredictable manner because the act involves bounded rationality.
D. irrationally because the act does not benefit anyone.
Answer: B
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Which of the following was not a typical characteristic of subprime mortgages?
a. low down payments b. loans to borrowers with poor credit histories c. limited incomes with which to make loan payments d. fixed interest rates
Your brother graduated from college 10 years ago and started to work at a salary of $20,000 . You expect to graduate this year and start to work for $35,000 . If the consumer price index was 80 ten years ago and is 120 this year, who will have received the higher real starting salary?
a. You will have. b. Your brother did. c. You and your brother both will have started at the same real salary level. d. Not enough information is supplied to answer the question.
The Fed has the power to increase or decrease the number of dollars in the economy through the decisions of
a. the Board of Governors. b. the FOMC. c. the regional Federal Reserve Bank presidents. d. the U.S. Treasury.
Economic theory predicts that if the government imposes a minimum wage above the equilibrium wage, then:
A. firms' labor costs will fall. B. employment will fall. C. total economic surplus will rise. D. all workers will be better off.