The uncertainty costs of inflation cause people to
A) incur more shoe leather costs.
B) increase their demand for money.
C) focus on the long run, which increases investment and speeds growth.
D) focus on the short run, which decreases investment and slows growth.
E) increase investment causing economic growth to decrease.
D
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Other things constant, when households decide to save more, the supply of credit rises, interest rates ________ and business investment ________
A) rise; rises B) rise; falls C) fall; rises D) fall; falls
The Ramsey Rule implies that goods be __________ in consumption.
A. unrelated B. equal C. opposite D. moderate
Merit goods are
a. goods that everyone wants b. goods that are rewards for appropriate behavior c. the same as public goods d. goods that some people think we need more of e. only produced by the government
Based on Moe’s Production Function with One Variable, Labor, what can we conclude about the quality of Moe’s workers?
a. The quality of Moe’s workers cannot be determined from this table.
b. The first two workers Moe’s added were the highest quality hires.
c. The last two workers added were relatively low quality.
d. The second worker Moe’s hired is his best employee.