A decrease in the quantity of labor supplied in response to a higher wage would be due to the:
A. price effect.
B. tax effect.
C. substitution effect.
D. income effect.
Answer: D
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Compared to adaptive expectations, rational expectations would imply that the transition between the short-run and the long-run will take:
a. the same amount of time. b. a longer period of time. c. a variable period of time. d. less time.
Which of the following is true of the gross domestic product (GDP) of a nation? a. It can be measured by the stock of consumer goods in a nation at a particular point in time
b. It can be measured by the stock of capital goods in a nation at a particular point in time. c. It can be measured either by calculating the total spending on production or the total income from that production. d. It is the sum of total spending on production and total income from that production. e. It can be measured from the stock of wealth in the nation.
Which of the following is not common to all investments?
A. Investors are required to pay some price to acquire them. B. Owners are given the opportunity to receive future payments. C. Future payments are typically risky. D. Paying a positive rate of interest.
__________ bidders in a Treasury auction are guaranteed their bids at the __________ price resulting from the auction
A) Competitive; market-clearing B) Noncompetitive; highest C) Competitive; lowest D) Noncompetitive; market-clearing