Refer to the Article Summary. Implementing a negative interest rate policy, as was advocated by the president of the Federal Reserve Bank of Minneapolis, would be designed to ________ the price level and ________ real GDP
A) increase; decrease B) increase; increase C) decrease; decrease D) decrease; increase
B
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Which of the following is NOT a transfer payment?
A) Medicare B) Social Security retirement payments C) Social Security disability payments D) spending on national defense
If a large percentage increase in the price of a good results in a small percentage increase in the quantity supplied of the good, supply is said to be
a. horizontal. b. relatively inelastic. c. relatively elastic. d. income proof.
Consider the market for gasoline. Buyers
a. and sellers would lobby for a price ceiling. b. and sellers would lobby for a price floor. c. would lobby for a price ceiling, whereas sellers would lobby for a price floor. d. would lobby for a price floor, whereas sellers would lobby for a price ceiling.
Suppose that you can schedule a worker for up to 10 hours per day. The total benefit and total cost functions are B(H) = 1200 × ?H and C(H) = 200H. The corresponding formulas for marginal benefit and marginal cost are MB(H) = 600/?H and MC(H) = 200. How many hours should you schedule the worker?
A. 9 hours B. 8 hours C. 4 hours D. 0 hours