Assume leisure is an inferior good instead of a normal good. The income effect of a wage increase will lead to a ________ demand for leisure and a ________ labor supply.
A. higher; higher
B. lower; higher
C. higher; lower
D. lower; lower
Answer: B
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In 1991, Argentina decided to peg its currency (the Argentinean peso) to the U.S. dollar. Most of Argentina's trading, however, was with Brazil and Europe, not the United States. What result would pegging the Argentinean peso to the U.S
dollar have on the cost of imports from and exports to Brazil and Europe?
Stock prices are
A) based less on the current profitability of firms than on their expected future profitability. B) based equally on the current profitability of firms and on their expected future profitability. C) not based on the current profitability of firms or on their expected future profitability. D) based more on the current profitability of firms than on their expected future profitability.
Over the long run, the U.S. economy:
a. has grown dramatically. b. has shown nominal growth. c. has remained more or less stagnant. d. has not produced enough capital goods.
The one central bank president that always has a seat on the Federal Open Market Committee is located in:
A. New York City. B. Boston. C. San Francisco. D. Chicago.