Mary increases her consumption of Good X after the price of Good Y decreased. For Mary
A) Good X and Good Y are substitutes.
B) Good X and Good Y are complements.
C) Good X is an inferior good.
D) Good Y is an inferior good.
B
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________ is a good measure of the opportunity cost of holding money
A) The real interest rate B) Liquidity preference C) Real income D) The inflation rate E) none of the above
Under the Social Security program currently in existence
A) benefits are based on need. B) benefits are determined by whether or not one contributed to the system. C) benefits are provided to everyone who contributed to the system EXCEPT those under private retirement programs that provide an annual income in excess of $13,500. D) benefits are guaranteed to be no lower for future retirees than for current retirees.
A price floor has no effect in a market when it's set
a. above the equilibrium price b. below the equilibrium price c. at 100 percent of parity d. above the price ceiling e. below the price ceiling
Which of the following is an example of a transfer payment?
a. wages and salaries paid to the employees of the Internal Revenue Service b. purchase of automobiles by a local police department c. agriculture subsidies paid to farmers d. salaries paid to the college professors of state-operated universities