If income effects are sufficiently strong, it may be the case that labor demand curves slope up.
Answer the following statement true (T) or false (F)
False
Rationale: There are no income effects in the producer model -- and thus no vehicle for demand curves to slope up as they do for Giffen goods in the consumer model.
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Suppose there are two types of people: "good risks" who have 1 to 9 odds of falling ill, and "bad risks" who have a 1 to 3 odds of falling ill. If an insurance company cannot distinguish good risks from bad risks, what is the best way for it to deal with this problem?
a. Do not offer any insurance at 1 to 3 odds. b. Make everyone purchase insurance that offers 1 to 3 odds. c. Limit the amount of insurance that can be purchased at 1 to 9 odds. d. Provide policies that offer 1 to 9 odds and 1 to 3 odds, allowing each group to purchase the appropriate policy.
An increase in unemployment, ceteris paribus, may
A. Lead to decreased government expenditures. B. Reduce a budget surplus. C. Reduce a budget deficit. D. Lead to increased government revenues.
The efforts to revive the economy in 2009 through 2011 were drawn from
A. new tools of monetary policy. B. the traditional tools of monetary policy. C. discretionary fiscal policy. D. all of the options are correct.
Which of the following is a significant difference in the outcomes between the dictator game and the ultimatum game?
A. There is little difference, as fairness considerations lead to similar splits of the money in both games. B. The dictator game tends to result in a more even split of the money. C. The ultimatum game tends to result in a more even split of the money. D. Self-interest is revealed more strongly in the ultimatum game than in the dictator game.