Which of the following is an example of automatic fiscal policy?
A) The government deliberately raises taxes.
B) The government deliberately lowers taxes.
C) The government deliberately increases spending.
D) The government deliberately decreases spending.
E) none of the above
E
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Bob inherits a large sum of money from his dead uncle's estate. Bob decides to retire young, so he quits his job and heads to the Bahamas. Bob is an example of
A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) None of the above is correct.
Imposing a minimum wage that is above the equilibrium wage rate results in
A) higher job search costs. B) lower unemployment. C) the labor market becoming more efficient. D) equilibrium in the labor market.
Economists estimate that ________ of U.S. currency is outside the United States and held primarily by ________
A) less than one quarter; foreign banks and foreign governments B) over half; households and firms in countries where there is little confidence in the local currency C) over half; foreign banks and foreign governments D) less than one quarter; households and firms in countries where there is little confidence in the local currency
Steven Levitt and Chad Syverson compared home sales in which real estate agents are hired by others to sell a home to instances in which an agent sells his or her own home. They found that homes owned by real estate agents sold for 3
7 percent more than other houses and stayed on the market 9.5 days longer, everything else equal. How could moral hazard explain these results?