In a market economy, a resource is compensated according to
a. the needs of its owner.
b. its contribution to the final product.
c. social priority.
d. government direction.
b. its contribution to the final product.
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The first phase of a typical cycle of economic populism is usually
A) hyperinflation. B) rising growth and rising wages. C) falling growth and falling wages. D) rising unemployment. E) severe disinflation.
Lenders generally want a higher interest rate to compensate them when loans stretch over a longer period because:
A. lenders want to be compensated for being unable to get their money back quickly. B. the opportunity cost increases over time. C. there's more uncertainty about potential future investment opportunities. D. All of these are true.
Which of the following would cause an upward shift in the consumption function?
a. a stock market crash b. an increase in the price level c. a decrease in disposable income d. a decrease in the price level
When buying a used car from a dealer, showing up in cheap clothing and ungroomed is an example of:
A. statistical discrimination. B. signaling. C. screening. D. building a reputation.