Which set of changes is definitely predicted to raise the price level in the short run?
A) The money supply falls and wage rates rise.
B) The money supply falls and wage rates fall.
C) The money supply rises and wage rates fall.
D) Labor productivity rises and there is a beneficial supply shock.
E) The prices of nonlabor inputs rise and individuals expect higher (future) incomes.
E
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If the marginal cost of treating an illness is zero, then the optimal amount of treatment to receive is the amount:
A. for which the average benefit of treatment is zero. B. for which the marginal benefit of treatment is zero. C. for which the total benefit of treatment is zero. D. that makes the patient is as healthy as possible.
While rent subsidies have some disadvantages, one advantage of rent subsidies is _____
a. administrative costs are low b. there is little chance of fraud c. the renter can chose from among different housing qualities d. renters have a strong incentive to shop carefully
One reason why a consumer might buy from a high-priced local hardware store instead of going to a big discount store several miles away in another community is that
a. the local store will still have lower money prices b. the time cost of going to the local store is equal to going to the discount store c. comparing the sum of money prices and time cost, the local hardware store is a bargain for people who value time highly d. comparing the sum of money prices and time cost, the local hardware store is a bargain for people who earn low hourly wages e. the time cost of going to the discount store is less than going to the local hardware store
The basics of the welfare state in the United States started as part of:
A. reparations after WWI in the late 1910s. B. the Bretton Woods plan after WWII in the 1940s. C. the New Deal legislation in the 1930s. D. the Great Recession Recovery and Aid Acts in the 2000s.