If unemployment insurance causes someone to wait longer before looking for work, this would be called
A. asymmetric information.
B. moral hazard.
C. adverse selection.
D. adverse allocation.
Answer: B
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Refer to Table 4-8. Suppose that the quantity of labor demanded increases by 40,000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?
A) W = $8.00; Q = 390,000 B) W = $8.50; Q = 380,000 C) W = $10.00; Q = 390,000 D) W = $9.50; Q = 380,000
If the interest rate is 11%, $1500 received at the end of 12 years is worth how much today?
a. 1500(1+0.11)^12 b. 1500/(1 +0 .11)^12 c. 1500/(1 + 11)^12 d. 1500
A . What action would a government take to keep its exchange rate from rising if demand for its currency increases? b. Why would a government want to keep its exchange rate from rising?
When the economy enters an expansion of a business cycle, households become more optimistic about expected future disposable income. The increase in optimism leads to
A) a shift upward of the consumption function. B) a movement downward along the consumption function. C) no change in the level of consumption expenditures. D) an increase in consumption expenditures. E) a movement upward along the consumption function.