Consider the market for medical doctors. Suppose the opportunity cost of going to medical school decreases for many individuals. Suppose it generally takes about ten years to become a practicing doctor. Holding all else constant, in ten years the equilibrium quantity of doctors will
a. increase.
b. decrease.
c. not change.
d. It is not possible to determine what will happen to the equilibrium quantity.
a
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The consumer Wi-Fi-service-service providers' market is best described as a
A. monopoly. B. monopolistic competition. C. oligopoly. D. perfectly competitive market.
Given the table above, suppose consumption in period two is $40,000. Then, the interest rate rises to five percent, and period-two consumption rises to $41,050. We may infer that ________
A) the income effect is stronger than the substitution effect B) the substitution effect is stronger than the income effect C) the substitution and income effects cancel out D) this consumer has a binding borrowing constraint
The government computes measures of income other than GDP because these other measures usually tell different stories about overall economic conditions
a. True b. False Indicate whether the statement is true or false
According to the Taylor rule, the Federal Reserve ________ the real interest rate as the output gap increases and ________ the real interest rate as the inflation rate increases.
A. lowers; raises B. raises; raises C. raises; lowers D. lowers; lowers