In the above figure, which part corresponds to an increase in the money wage rate?
A) Figure A
B) Figure B
C) Figure C
D) Figure D
B
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Which of the following is a normative statement?
A. College tuition rates are rising. B. Twenty-eight percent of U.S. adults have a bachelor's degree. C. The average income of a college graduate exceeds that of the average high school graduate. D. State governments should pay for the first two years of college at public institutions.
If Bill is willing to pay $10 for one good X, $8 for a second, and $6 for a third, and the market price is $5, then Max's consumer surplus is:
a. $24 b. $18. c. $9 d. $6.
Adam and Becky both recently started new jobs. Both have determined that they should save 10 percent of their monthly income toward retirement. Adam's employer has no program established for payroll deduction, but he could easily set up automatic
withdrawals to go into a retirement fund. Becky's employer automatically directs 8 percent of the paycheck into a retirement fund, but the employee can change the percentage deducted. Behavioral economists would expect: A. Adam to save more as he would set up a 10 percent automatic withdrawal while Becky would stay at the default of 8 percent. B. Becky would save more, as both would tend to stay at the defaults provided by their employers. C. them both to save 10 percent eventually, as both had predetermined that that was the optimal amount to save. D. Becky to feel a greater sense of loss by seeing funds automatically withheld each month.
In considering the relationships between price and quantity demanded, ceteris paribus directs the economist to assume that:
A. price increases affect quantity. B. quantity increases affect prices. C. neither price nor quantity affect demand. D. all other variables remain unchanged.