The rise in equilibrium GDP shifts the money demand curve to the left
a. True
b. False
B
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A minimum wage is an example of a
A) price floor. B) price ceiling. C) quantity quota. D) free market equilibrium.
In order for the compensating differential associated with a risky job to be negative (so that a risky job pays less than a nonrisky job), it must be that
A. most workers prefer the risky job to the safe job when both wages are equal. B. many workers are willing to work the risky job for free. C. the government mandates that the wages in the two sectors be equal. D. there is great demand for labor in both sectors. E. the number of risky jobs is less than the number of workers who prefer the risky job.
If a decrease in price decreases a monopolist's total revenue, then
A) demand is elastic. B) demand is inelastic. C) demand is unit elastic. D) the law of demand is violated.
Assume that yields on bonds (rate of return) begin to fall while the stock market is booming, what should we see happen to the demand and price of stocks and why?
What can we say about the opportunity cost of holding on to bonds in this situation?