Jim recently graduated from college. His income increased tremendously from earning $500 . a year to $60,00 . a year. Jim decided that instead of renting he will buy a house. This implies that
a. Houses are normal goods for Jim
b. Houses are inferior goods for Jim
c. Renting and Owning are complementary for Jim
d. Need information on the price of houses
a
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Suppose regulators impose a price ceiling on a monopoly. If the price ceiling is set too high
a. deadweight loss will be eliminated. b. deadweight loss will be reduced. c. deadweight loss will be increased. d. deadweight loss will not be affected.
The assumption of rational self-interest does not rule out the possibility of concern for other individuals
a. True b. False
Which of the following is the most liquid asset?
a. a certificate of deposit b. a government bond c. a share of corporate stock d. a checking account balance e. fine jewelry
Policymakers following a "lean against the wind" policy would
a. increase government expenditures when output is low and decrease them when output is high. b. increase government expenditures when output is low and do nothing when output is high. c. decrease government expenditures when output is low and increase them when output is high. d. decrease government expenditures when output is high and do nothing when output is low.