Refer to Figure 13-1. Ceteris paribus, an increase in the growth rate of domestic GDP relative to the growth rate of foreign GDP would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
B
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According to Friedman, a person's marginal propensity to consume is determined by the person's
a. transitory income b. permanent income c. absolute income d. marginal propensity to save e. life cycle income
Charlotte Reeder lost her job in a company layoff two years ago. She tried for one solid year to find employment but failed to get an interview. She has since given up trying. Last week she was visited by the BLS and asked to describe her working status. She explained what she did and the BLS recorded her as being
a. a member of the labor force who is temporarily employed b. a member of the labor force who chooses not to be employed c. a member of the labor force who is underemployed d. a discouraged worker who is not a member of the labor force e. now structurally unemployable
What is the equilibrium quantity of a market with a demand curve P = 10 - Q and a supply curve equal to P = 2 + 2Q and a tax imposed on the seller of $2 per unit? How does this tax effect resource allocation? What might justify the allocation effect of the tax?
What will be an ideal response?
Which of the following statements is most accurate regarding who benefits and loses from establishment of a minimum wage above the market clearing wage?
A) Individuals who obtain jobs benefit because they earn a higher wage, but some individuals lose because employers will not hire them at the minimum wage. B) All workers benefit equally from the establishment of the minimum wage because just as many workers as before remain employed, and all earn the higher minimum wage. C) All employers benefit equally from the establishment of the minimum wage because they are able to hire fewer workers at a lower wage. D) All employers lose because they must pay the higher minimum wage to the same number of employees as they did before the minimum wage was established.