Suppose Ed Sike, whom you've met in chapter 8, loses one of his $10 bills. What directly happens to GDP?
A) It increases by ten dollars.
B) It decreases by ten dollars.
C) It decreases by more than ten dollars due to an unavoidable multiplier process.
D) It remains unchanged.
D
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Fiona's hourly wage increases from $8 to $10 . Which of the following describes a consequence of the increase in Fiona's wage?
a. The opportunity cost of Fiona's leisure time has decreased. b. Fiona may choose to work fewer hours due to the increase in her wage. c. If Fiona's labor supply curve is upward sloping, she will choose to work fewer hours. d. Both a and b are correct.
General Equilibrium assumptions are the same assumptions we used in a ___________________
Fill in the blank(s) with the appropriate word(s).
Covered interest parity is rarely found to hold empirically.
Answer the following statement true (T) or false (F)
Why do firms engage in the activity of production?
A. to develop a supply schedule B. to participate in the circular flow C. to acquire profits D. to help society advance technologically