Adam got a job in a multinational company. He was told during the orientation session that he will not be terminated for poor performance during the first six months of his work
Adam immediately decided to put minimum effort into the job during these months. His behavior is an example of ________. A) a positive externality
B) moral hazard
C) the prisoners dilemma
D) the free-rider problem
B
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If an individual receives in-kind transfers from the government in the form of food stamps, public housing, and so on, his money income is
A) less than his total income. B) greater than his total income. C) the same as his total income. D) equal to his in-kind income plus his wages.
Which of the following is a real quantity?
A. The cost of a new car B. The current price of a barrel of oil C. The number of tons of steel produced in 2005 D. The current wages paid to factory workers
Is it possible for a currency to appreciate relative to one currency, and depreciate relative to another?
A. No, a currency rises or falls against all currencies. B. No, this could happen only under the gold standard. C. Yes, but only if all governments agree on the new rates. D. Yes, this is possible in a world of floating rates.
Government spending increases by $80 billion and the equilibrium level of output increases by $320 billion. The government spending multiplier
A. is 4. B. is 5. C. is 6. D. cannot be determined from this information, because the MPC is not given.