What is similar about the income effect and the substitution effect?
a. Both describe an individual worker’s response to higher wages.
b. Both explain reasons workers choose to take time off.
c. Both can be depicted as an upward sloping curve
d. Both relate to the collective supply of labor.
a. Both describe an individual worker’s response to higher wages.
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Which of the following is included in GDP?
a. the value of illegally produced goods b. the value of housework by a stay-at-home dad c. the value of volunteer work done at a local homeless shelter d. the cost of government-provided social services
Which of the following best describes the response of output as time passes to an increase in the saving rate?
a. The growth rate of output does not change. b. The growth rate of output increases and gets even larger as time passes. c. The growth rate of output increases and does not change as time passes. d. The growth rate of output increases, but diminishes to its former level as time passes.
Since 1980, the public debt has
A. declined absolutely, but has remained constant as a percentage of the GDP. B. grown absolutely, but declined as a percentage of the GDP. C. declined absolutely and as a percentage of the GDP. D. grown absolutely and as a percentage of the GDP.
As long as interest-earning opportunities exist, present dollars are worth
A. More than future dollars. B. Less than inflation-adjusted dollars. C. Less than future dollars. D. More than previous periods' dollars.