When there is only a weak link between work effort and reward
a. individuals will undertake fewer projects that create income.
b. taxing the rich and distributing the money to the poor becomes the best way to increase the size of the economic pie.
c. corporations will profit more.
d. individuals have a strong incentive to undertake projects that generate income.
A
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What information is provided by the aggregate demand curve?
What will be an ideal response?
If the spending multiplier is equal to 4, then a $25 initial increase in investment spending will lead to a:
a. $25 increase in real GDP. b. $1 decrease in real GDP. c. $1 increase in real GDP. d. $100 decrease in real GDP. e. $100 increase in real GDP.
Which of the following individuals would not be included in the labor force?
A. Kit, who has retired and is not looking for work. B. Divy, who is on temporary layoff from General Motors. C. Soraya, a recent college graduate, who does not have a job, but has applied for several in the last week. D. Giles, a physician who chooses to work part-time.
You enter a store and buy a bottle of soda. Do you usually receive consumer surplus?
A) Yes, because you wouldn't buy the soda if your willingness to pay would be less than the price. B) Yes, because you are thirsty. C) No, because you value other drinks more. D) No, because you have less money after the transaction.