If the interest rate is 4 percent, then you would be equally happy if you received a gift of either $100 today or a gift of
a. $110.00 two years from today.
b. $112.49 three years from today.
c. $116.00 four years from today.
d. $123.67 five years from today.
b
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If the area between the line of equality and the Lorenz curve is 1,000, the Gini ratio is
A) 0.8. B) 0.2. C) 0.1. D) 0.5.
Suppose that an economy produces 30,000 units of good A which sells at $3 a unit and 60,000 units of good B which sells at $2 per unit. Production of good A contributes
a. 1/2 times as much to GDP as the production of good B. b. 3/2 times as much to GDP as the production of good B. c. 3/4 times as much to GDP as the production of good B. d. 4/3 times as much to GDP as production of good B.
In the Baumol-Tobin analysis of transactions demand, scale economies imply that an increase in real income increases the quantity of money demanded ________, while an increase in the price level increases the quantity of money demanded ________
A) proportionately; less than proportionately B) more than proportionately; proportionately C) less than proportionately; proportionately D) proportionately; more than proportionately
Ceteris paribus, which of the following would cause the aggregate demand curve to shift to the left?
a. lower personal taxes b. a rise in consumer confidence c. greater stock market wealth d. a reduction in transfer payments