An example of statistical discrimination would be:
A. assuming the food will be better at an Italian restaurant than a Chinese one in the Little Italy neighborhood of NYC.
B. charging young drivers a higher premium than older drivers.
C. charging homes near a lake higher premiums for flood insurance than those on a hill.
D. All of these are examples of statistical discrimination.
Answer: D
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Turkey is an importer of wheat. The world price of a bushel of wheat is $7 . Turkey imposes a $3-per-bushel tariff on wheat. Turkey is a price-taker in the wheat market. As a result of the tariff,
a. Turkish consumers of wheat become worse off and Turkish producers of wheat become worse off. b. Turkish consumers of wheat become worse off and Turkish producers of wheat become better off. c. Turkish consumers of wheat become better off and Turkish producers of wheat become worse off. d. Turkish consumers of wheat become better off and Turkish producers of wheat become better off.
Suppose the government spending multiplier is 1.5. This means that
A) a $1 decline in government spending will raise Real GDP by $1.50. B) a $1 rise in government spending will raise both total spending and Real GDP (assuming prices are constant) by $1.50. C) a $1 rise in government spending will raise investment spending by $1.50. D) a $1 rise in government spending will change interest rates by 1.50 times what it was before the $1 rise in government spending. E) none of the above
The nominal interest rate is determined by:
A. inflation. B. the Treasury. C. the Fed. D. the point where the supply of money meets the demand for money.
An increase in aggregate demand will cause:
a. real domestic output to fall and have no effect on the price level b. The price level to increase and real domestic output to rise c. The price level to drop and have no effect on real domestic output d. Both real output and the price level to fall