Which of the following will increase the demand for large automobiles?
a. A fall in the price of small automobiles.
b. A rise in insurance rates for large automobiles.
c. A fall in the price of large automobiles.
d. A rise in buyers' incomes (assuming large automobiles to be a normal good).
d
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An increase in the minimum wage to $15 per hour would lead to
A) an increase in search activity for many workers. B) a decrease in search activity for many workers. C) a decrease in unemployment. D) no change in unemployment. E) no change in employment.
Continuing with the same family from the preceding question, suppose a risk neutral insurance company exists to provide vacation insurance. Suppose further that each vacation day requires a constant expenditure, and this expenditure is standard across everybody. This allows us to simplify the problem by considering all payments to be in terms of vacation days. What is the least the insurance
company would charge (in terms of vacation days)? a. 1 b. 2 c. 3 d. 4
The category of resources economists call "land" refers to all of the following, except:
a. natural gas. b. animals. c. oceans. d. minerals. e. buildings.
Which category has the highest amount of state and local spending?
a. education b. police c. firefighting d. transportation