When output rises, unemployment also rises.
a. true
b. false
Ans: b. false
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In the above table, for Mary the opportunity cost of producing a dress is ________ and the opportunity cost for Mark of producing a dress is ________
A) 1 1/2 jackets; 2 1/2 jackets B) 1 jacket; 1 jacket C) 1 dress; 1 dress D) 1 1/2 jackets; 2/3 of a jacket E) 1 1/4 jackets; 1/2 of a jacket
The challenge for economists in the early postwar period was to develop a consumption hypothesis that could explain how
A) the saving ratio could remain fairly constant across income groups while the aggregate saving ratio increased over time as average real income grew. B) the saving ratio for high-income families could be lower than for low-income families while the aggregate saving ratio remained fairly constant over time as average real income grew. C) the saving ratio for high-income families could be higher than for low-income families while the aggregate saving ratio remained fairly constant over time as average real income grew.
Three difficulties that limit the usefulness of ownership in resolving incentive problems are:
A. wealth constraints, risk aversion, and free-riding. B. wealth constraints, risk aversion, and bundling. C. risk aversion, free-riding, and conflict of interests. D. wealth constraints, free-riding, and bundling.
Which of the following is correct?
a. Well designed tax cuts can increase investment which fluctuates more than consumption over the business cycle.
b. Well designed tax cuts can increase investment but it fluctuates less than consumption over the business cycle.
c. Tax cuts have little effect on investment which fluctuate more than consumption over the business cycle.
d. Tax cuts have little effect on investment but it fluctuates less than consumption over the business cycle