When the LM curve is vertically sloped, the __________ in income due to a change in the money supply will be __________ when the LM curve is positively sloped, but not vertical
A) decrease; greater
B) decrease; smaller
C) increase; greater
D) increase; smaller
C
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Colin consumes both corned beef sandwiches and steak sandwiches. Corned beef is priced at $5.00 per sandwich and steak sandwiches are priced at $8.00 . Which of the following marginal utility pairs is consistent with Colin's consumer equilibrium at these prices?
a. MU of corned beef sandwich = 1; MU of steak sandwich = 1 b. MU of corned beef sandwich = 1; MU of steak sandwich = 1.6 c. MU of corned beef sandwich = 1.6; MU of steak sandwich = 1 d. MU of corned beef sandwich = 1; MU of steak sandwich = 5
The long-run Phillips curve would shift to the left if
a. the money supply growth rate increased or labor markets become more flexible. b. the money supply growth rate increased but not if labor markets become more flexible. c. labor markets become more flexible but not if the money supply growth rate increased. d. None of the above is correct.
Suppose a law firm negotiates a very low price for each of its 1000 employees to be members at the athletic club that is located next to the law firm. Which of the following is not likely to be true?
A. If the typical individual gym membership costs $50 per month, the law firm should expect to save $50,000 per month in wages. B. The firm can likely negotiate a lower per person price at the gym than each employee could negotiate alone. C. In the long run, the law firm will probably attract workers who value the gym benefit the most. D. The law firm can pay its workers less than a comparable law firm that does not offer the gym benefit. E. Some employees will take advantage of the gym benefit, while others will not.
Since the demand for radishes is relatively elastic, a tax on radishes would be largely borne by radish farmers.
Answer the following statement true (T) or false (F)