If the secular trend of labor productivity rises from 2 percent per year to 4 percent, the number of years that it will take for the standard of living to double will decline by about:
A. 23 years.
B. 5 years.
C. 17 years.
D. 10 years.
Answer: C
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Who among the following enjoys some form of property rights?
A) A common homebody B) A small business owner C) A bondholder D) A state senator E) All of the above.
The MP curve may be used to represent ________
A) movements of the real interest rate as a direct policy action of the Federal Reserve B) movements of the real interest rate that are independent of direct Federal Reserve action C) how the real interest rate is related to the inflation rate D) all of the above E) none of the above
The "efficiency wage" is the wage at which
A) employees have no incentive to shirk. B) employees have an incentive to do the optimal (positive) amount of shirking. C) the cost of looking for work is equal to the value of the leisure time for the unemployed individual. D) there is no unemployment. E) there is only frictional unemployment.
Mamma's Honey sells locally produced raw honey at an equilibrium price of $12 a jar and an equilibrium quantity of 200 jars. Which of the following is most likely to be true if the government begins to pay a $3-per-jar subsidy to the seller? a. The price paid by buyers will increase
b. The price received by sellers will decrease. c. The quantity demanded by buyers will decrease. d. Total surplus will decrease.