If income decreases, there will be a parallel inward shift of the budget line
a. True
b. False
A
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Adverse selection is a situation in which one party to an economic transaction has less information than the other party
Indicate whether the statement is true or false
Which of the following statements is true?
a. When a change in income causes consumption to change, the consumption-income line shifts; however, when anything besides income changes, we move along the line. b. When a change in income causes consumption to change, we move along the consumption-income line; however, when anything besides income changes, the line shifts. c. When income or anything else affecting consumption changes, we move along the consumption-income line. d. When income or anything else affecting consumption changes, the consumption-income line shifts. e. There is no way to determine, without more information, whether a change in income or anything else will shift the consumption line or cause movement along the consumption-income line.
Other things the same, which of the following would a rise in the real interest rate raise: desired investment spending, desired national saving, desired net capital outflow?
The crowding model of occupational discrimination suggests that occupational segregation results in:
A. A lower domestic output than would otherwise be the case B. Higher levels of total employment than would otherwise be the case C. Higher interest rates in the private sector than would otherwise be the case D. A higher rate of inflation than would otherwise be the case