If income increases we know for sure that the:
a. demand curve will shift to the right
b. demand curve will shift to the left
c. demand curve will stay the same since only price affects it
d. supply curve will shift to the right
e. none of the above
Ans: a. demand curve will shift to the right
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Which group below will generally have a more difficult time finding employment if a nation's minimum wage were increased?
A) Those with more work experience B) Those who are among the younger job seekers C) Those who form the majority race in the population D) All of the above.
Why are corporations more likely to raise funds externally by debt instead of equity?
A) moral hazard is less of a problem with debt contracts B) transactions costs tend to be higher in the stock market than bond market C) to avoid paying dividends D) interest rates tend to be lower than dividend rates
During inflationary periods
a. the real value of money rises. b. the real value of money remains constant. c. the real value of money falls. d. the purchasing power of money rises.
Average productivity can be measured as total output divided by total units of labor
a. True b. False Indicate whether the statement is true or false