From any point above the current LM curve, money market equilibrium can be restored by some combination of a ________ income and a ________ interest rate
A) higher, higher
B) higher, lower
C) lower, higher
D) lower, lower
B
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________ examines whether one variable affects another by using data to build a model that explains the channels through which this variable affects the other
A) Indirect-model evidence B) Organizational-model evidence C) Reduced-form evidence D) Structural-model evidence
Refer to Figure 9.3. If the government establishes a price ceiling of $1.00, consumer surplus will
A) fall by $50. B) fall by $150. C) remain the same. D) rise by $50. E) rise by $150.
Adverse selection occurs in the insurance market because:
A. the seller has more information than the buyer. B. the buyer has more information than the seller. C. both the buyer and the seller have incomplete information. D. Any of these could be the cause of adverse selection in insurance market.
Which of the following correctly describes marginal revenue product?
a. The change in total revenue divided by the change in output b. The change in total cost divided by the change in total revenue c. The change in total cost divided by the change in output d. The change in total revenue when an additional unit of a resource is hired