Government expenditures are considered autonomous in the model meaning that changes are the result of:
A) changes in real income.
B) changes in inflation.
C) changes in unemployment.
D) changes in policy decisions.
D
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A professor changes the penalty for cheating on exams from getting a 0 on the exam to getting an F in the course. The professor has
A) decreased the marginal benefit of cheating. B) recognized that students don't make rational choices. C) increased the marginal cost of cheating. D) made all the students act in the social interest. E) recognized that students don't respond to incentives.
As the income of an individual increases, he can afford more leisure. This refers to the ________ of a wage increase
A) income effect B) substitution effect C) transformation effect D) opportunity cost effect
If a corporate bond with a face value of $20,000 pays yearly coupon payments of $500, what is the coupon rate?
A) 2.5% B) 4% C) 25% D) 40%
The sum of the explicit and implicit costs incurred in the production process is called:
a. fixed cost. b. sunk cost. c. marginal cost. d. total cost.