John spends exactly the same dollar amount on candy bars each week, regardless of their price. John's demand curve for candy bars is
a. upward-sloping
b. backward-bending
c. perfectly inelastic
d. perfectly elastic
e. unit elastic
E
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Skill-biased technological change increases wage inequality by altering the ________ high-skilled workers relative to low-skilled workers.
A. reservation price of B. supply of C. demand for D. mobility of
According to the permanent-income hypothesis, a permanent increase in a person's income will
A) increase consumption more than savings. B) increase savings more than consumption. C) be smoothed out to where the increases in consumption and savings are roughly equal. D) have the same effect on consumption as a transitory increase in income.
Which of the following facilitates the movement of checks across the country?
a. Board of Governors b. Treasury Department c. Federal Open Market Committee d. Federal Reserve Banks e. Department of Commerce
Which of the following is usually estimated to be between 4.5 and 5 percent?
a. the labor force participation rate b. the natural rate of unemployment c. the rate of frictional unemployment d. the rate of seasonal unemployment