The life-cycle hypothesis predicts there to be a rather ________ short-run multiplier and thus a rather ________ private economy
A) low, unstable
B) low, stable
C) high, unstable
D) high, stable
B
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What happens if there is a shortage or a surplus of U.S. dollars in the foreign exchange market?
What will be an ideal response?
A problem with using the price of a product similar to the intermediate good sold on the market is
a. the market price includes a margin above marginal cost b. the product on the market may include costly features your downstream division does not use c. the product on the market may be cheap because it is not as high of quality as your downstream division uses d. all of the above
A person will choose to work another hour if the benefit of another hour of work is:
A. greater than the opportunity cost. B. exactly equal to the average total cost to the firm. C. exactly equal to the opportunity cost. D. less than the opportunity cost.
Economic analysis indicates that
a. unorganized groups of taxpayers and consumers will be better able to secure redistribution through the political process than well-organized interest groups. b. rent-seeking activities are beneficial to a nation's prosperity because they alter public policy. c. most income transfers in the United States are directed toward the poor. d. market adjustments and competition for transfers will erode much of the gain of transfer recipients.