During a recession, unemployment insurance ensures that:
a. the disposable income of those who are unemployed will increase above the usual level.
b. disposable income does not fall by as much as GDP decreases
c. disposable income increases as GDP falls.
d. the marginal propensity to consume increases.
e. the marginal propensity to consume decreases.
b
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If Indiana has an absolute advantage over Maine in producing both corn and ball bearings, then
a. Indiana should produce both corn and ball bearings b. there are no benefits possible from specialization c. Maine should produce ball bearings and Indiana should produce corn d. Indiana should produce ball bearings and Maine should produce corn e. they still may benefit from specialization, but more information is needed to determine which state should specialize in each
A surprising outcome of the Rock-Paper-Scissors game is that
A) it is a clear example of a first mover advantage. B) there is no pure-strategy Nash equilibrium. C) it is best not to play the game. D) it is a good way to determine who goes first in a sequential move game.
Refer to the information provided in Figure 33.1 below to answer the question(s) that follow.
Figure 33.1Refer to Figure 33.1. The opportunity cost of producing a bushel of alfalfa in Canada is
A. half a bushel of soybeans. B. 1 bushel of soybeans. C. 2 bushels of soybeans. D. zero.
Mortgages issued to borrowers whose credit histories include failures to make payments on bills are known as ________ mortgages
A) subprime B) Alt-A C) catastrophic D) variable rate