Refer to Table 3.2, which shows some costs and benefits of having your car repaired. Suppose your mechanic charges a non-refundable fee of $100 just for scheduling an appointment. What happens to the best choice of hours to spend on car repairs?
A. It increases by 1 hour.
B. It decreases by 1 hour.
C. It doesn't change.
D. It decreases by 2 hours.
C. It doesn't change.
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If there is a decrease in taxes on business firms in a small open economy, it causes the current account to ________ and the equilibrium amount of saving to ________
A) fall; fall B) rise; remain unchanged C) fall; remain unchanged D) rise; fall
An economy eliminates a recessionary gap by reducing wages and prices
a. True b. False Indicate whether the statement is true or false
When the Fed decreases the money supply, interest rates
a. rise. b. fall. c. are unaffected. d. rise and then fall. e. fall and then rise.
All differences in wages that are not accounted for by differences in human-capital investment are likely to be a result of discrimination
a. True b. False Indicate whether the statement is true or false