Now that Social Security payments are indexed the:
A. nominal value is adjusted to maintain a constant real value.
B. payments are adjusted so retirees can buy more with their payments over time.
C. payments are not adjusted enough, so retirees can buy less with their payments over time.
D. real value is adjusted to maintain a constant nominal value.
Answer: A
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The analysis of asymmetric information problems is called ________
A) adverse selection B) microeconomics C) cybernetics D) agency theory
Because suppliers can more readily adjust their output in the long run than in the short run, we expect price elasticity of supply to be
a. negative in the long run and positive in the short run b. positive in the long run and negative in the short run c. greater than one in the short run and less than one in the long run d. higher in the long run than in the short run e. higher in the short run than in the long run
Special interest group Z receives a 1/200th slice of the economic pie. Its net benefit from both an economic growth policy and a transfer policy is $30,000. How much does the size of the economic pie (Real GDP) need to grow before group Z is indifferent between the two policies?
A) $150 B) $600,000 C) $600,000,000 D) $6,000,000 E) none of the above
The income effect of an increase in the wage rate on the quantity of leisure demanded
A. makes leisure less expensive which causes people to work less. B. gives people more purchasing power and causes people to work less. C. gives people less purchasing power and so they will work more. D. makes leisure more expensive which leads people to work more.