When real rates of interest are negative, borrowers:
A. benefit, because the value of their debt declines.
B. suffer, because the value of their debt declines.
C. benefit, because the value of their debt increases.
D. suffer, because the value of their debt increases.
A. benefit, because the value of their debt declines.
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What happens to the equilibrium wage and quantity of labor if output price rises?
A) The equilibrium wage and the equilibrium quantity of labor rise. B) The equilibrium wage rises and the equilibrium quantity of labor falls. C) The equilibrium wage falls and the equilibrium quantity of labor rises. D) The equilibrium wage and the equilibrium quantity of labor fall.
What accounts for specialization?
a. People specialize in the activity in which their opportunity costs are at a maximum. b. People specialize in the activity in which their opportunity costs are lowest. c. People do not specialize in any activity. d. People specialize in the activity that pays the highest wage. e. People specialize in the activity that they enjoy the most, no matter what the salary is.
The natural rate of unemployment worsens if:
a. Unemployment benefits drastically improve. b. Capital markets become more competitive. c. A nation's resource endowments expand. d. All of the above. e. Actually, the natural rate cannot worsen. That's why it's called "natural."
Excise taxes are designed to ______.
a. tax all products equally b. tax distinct products only c. help low-wage earners invest more d. help low-wage earners afford necessities