A leftward shift in the money demand function would result from:
a. a decrease in the money supply.
b. a decrease in the price level.
c. an increase in real income.
d. a decrease in the interest rate.
e. an increase in the interest rate
b
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What must be true for a consumer to buy a good or service?
A) The price must be equal to or less than the marginal benefit. B) The total benefit received must equal the total spent to buy the good or service. C) The consumer must be able to obtain some consumer surplus. D) The consumer must not be able to produce the product. E) The price must be equal to or greater than the marginal benefit.
Ricky leaves his job as a high school math teacher and returns to school to study the latest developments in computer programming, after which he takes a higher paying job at a software firm. This is an example of
a. A compensating differential. b. Human capital. c. Signaling. d. Efficiency wages
Pat can either drive to work, which takes half an hour and uses $1.50 worth of gas, or take the bus, which takes an hour and costs $1.00. How should Pat get to work?
A. Pat should take the bus because it costs $0.50 less than driving. B. Pat should take the bus if saving half an hour is worth $0.50 or more. C. Pat should drive because it saves half an hour relative to taking the bus. D. Pat should drive if saving half an hour is worth $0.50 or more.
Upon graduation, Ellie had two job offers. The jobs were identical in every way with two exceptions. One job was located in San Diego, CA and offered an annual salary of $50,000. The other job was located in Omaha, NE and offered an annual salary of $60,000. The salary difference is due to
A. compensating differentials. B. the firm in California had a higher demand for workers than the firm in Nebraska. C. transfer payments. D. discrimination.