The following table shows Jay's estimated annual benefits of holding different amounts of money.Average money holdingsTotal benefit$100$20$200$29$300$36$400$41$500$44 How much money will Jay hold if the nominal interest rate is 6 percent? (Assume he wants his money holdings to be in multiples of $100.)
A. $300
B. $100
C. $200
D. $400
Answer: A
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Suppose a monopolist chooses to advertise its good and its own demand curve shifts to the right, then we know that
a. the industry's demand curve shifts in precisely the same way b. its competitors share some of the benefits of the advertising c. the monopolist's cost curves will shift to accommodate the shift in demand d. the price of substitute goods will fall e. consumers are turned off by the advertising and buy less at every price
Which of the following is likely to shift the labor supply curve to the left, assuming all else equal?
A) A rise in the wage rate B) A social change that discourages women to participate in the labor force C) A fall in the wage rate D) Decrease in the maximum amount of unemployment benefits
Assuming that opportunity costs are constant, which of the following is a correct statement? (See the above table.)
A) The United States has a comparative advantage in bicycle production. B) The United States has a comparative advantage in producing both goods. C) Mexico has a comparative advantage in producing bicycles. D) Mexico has a comparative advantage in producing both goods.
A ________ income tax means that those with a higher income pay a higher percentage of their income in taxes than low-income people.
A. proportional B. consumption-based C. progressive D. regressive