Suppose Bob works for Mary as a proofreader. Mary and Bob fall deeply in love, marry, and have eight children. Bob stops working for Mary in order to care for the children. What will be the effect on GDP?
A) GDP will increase.
B) GDP will decrease.
C) GDP will not change.
D) GDP may increase or may decrease depending on inflation.
B
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Players in all of the following games have no dominant strategy except in
A) a prisoner's dilemma game. B) a pure coordination game. C) an assurance game. D) a battle of the sexes game.
Which of the following statements is false?
A) If the economy is self-regulating, wages are flexible. B) The frictional unemployment rate equals the natural unemployment rate minus the structural unemployment rate. C) If the economy is producing Natural Real GDP, it is operating at the natural unemployment rate. D) The economy is operating at full employment if it is producing more than Natural Real GDP.
Suppose that the technology used to manufacture laptops has improved. The likely result would be:
A. an increase in quantity supplied of laptops. B. a decrease in quantity supplied of laptops. C. a decrease in supply of laptops. D. an increase in supply of laptops.
The transaction demand for money is most clearly related to its use as a
A. medium of exchange. B. standard of value. C. measure of value. D. store of value. E. standard of deferred payment.