Which of the following statements about exchange is false?
a. The expectation of gain motivates people to engage in trade.
b. If a party to a potential exchange does not believe that it will lead to personal gain, he or she can chose not to engage in the trade.
c. Voluntary exchange is generally mutually beneficial to the trading partners.
d. If one trading partner gains, the other must lose.
D
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According to the Keynesian view of the demand for money, an increase in uncertainty will cause
A) a decrease in interest rates. B) an increase in interest rates. C) an increase in aggregate income. D) an increase in consumption.
Suppose total factor productivity increases. Which of the following is incorrect?
A) Households are better off. B) Consumption goes up. C) The real wage goes down. D) Output goes up.
The reason that inflation rarely harms workers is that
a. wages rise at the same time prices rise. b. wages fall when prices rise. c. nominal income falls as prices rise. d. the minimum wage rate automatically rises when the price level rises.