The CFNAI is a
A) leading index based on variables released with different frequencies.
B) coincident index based on variables released with different frequencies.
C) leading index based on 85 monthly variables.
D) coincident index based on 85 monthly variables.
D
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If a macroeconomist studying the causes of unemployment asserts that a particular change in technology will cause the rate of unemployment to decrease by ten percent, then this macroeconomist is at which step in the process of developing an economic
model? A) Identify the endogenous variables. B) Develop a model. C) Compare the model with the data. D) Identify the exogenous variables. E) Conduct prediction and policy analysis.
If fair insurance is offered to a risk-averse person, she will
A) buy enough insurance to eliminate all risk. B) not buy any insurance because it is overpriced. C) not buy any insurance since the marginal utility of the amount of the payment is positive. D) buy enough insurance to cover about half of the possible loss.
MoneyMinds Inc, a finance company, wants to reduce its cost. The CEO was against firing employees and suggested that instead they could reduce the salary of each employee. However, soon after the mandate was approved, most of the productive workers started resigning. The can be explained by the _____
a. efficiency wage theory b. insider-outsider model c. adverse selection of wage cuts argument d. relative wage coordination argument
If the quantity of gidgets demanded increases when the price of gadgets decreases
A. gidgets and gadgets are complements. B. gidgets and gadgets are substitutes. C. gadgets are normal goods, while gidgets are inferior goods. D. gidgets are normal goods, while gadgets are inferior goods.