Refer to the scenario above. If the curator values the painting at $45,000, which of the following problems is likely to arise?
A) Adverse selection
B) Free-rider problem
C) The paradox of thrift
D) The tragedy of the commons
A
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If prices in the current year are higher on average than in the base year, real GDP in the current year ________ nominal GDP in the current year.
A. is equal to B. could be greater than or less than C. is greater than D. is less than
In the summer 2012 the lobster catch in Maine was especially large, but instead of celebrating the fisherman were suffering from a lower total revenue
(Source: New York Times, July 28, 2012 ) We learn from the article that despite the larger quantity of lobster caught, the total revenue of the fisherman decreased. This fact means that the demand for lobster is A) unit elastic. B) elastic. C) inelastic. D) perfectly elastic.
Wage differentials between occupations can be explained by all of the following except
A) the relative differences between demand and supply in various occupations B) the fact that some occupations are more desirable than others. C) the market power of different employers. D) the fact that some occupations require higher levels of human capital than others.
In the classical model, beginning from an equilibrium in which the government is running a budget surplus
a. the supply of loanable funds will be horizontal b. an increase in government spending will cause the interest rate to rise c. the supply of loanable funds will be vertical d. an increase in government spending will crowd out less than an equal amount of private spending e. a decrease in government spending will crowd out less than an equal amount of private spending