The Taylor rule allows the real long-term interest rate to:
A. be zero.
B. be five percent less the inflation rate.
C. fluctuate with the natural rate of interest.
D. be one percent.
Answer: C
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Consider the above table. Assuming the government imposes a price ceiling on garbanzo beans of $4, what would be the likely result?
A) a surplus of 2,000 garbanzo beans B) a shortage of 2,000 garbanzo beans C) No change, equilibrium would prevail. D) The quantity demanded of garbanzo beans would fall to zero.
The skewness is most likely positive for one of the following distributions:
A) The grade distribution at your college or university. B) The U.S. income distribution. C) SAT scores in English. D) The height of 18 year old females in the U.S.
The underemployed are defined as people who have:
a. full-time jobs and who are looking for other full-time permanent employment that pays at a higher rate. b. only part-time or temporary jobs and who are looking for full-time, permanent employment. c. stopped looking for employment even though they may be capable of holding a part-time job. d. multiple full-time jobs and/or part-time jobs but are still counted as employed.
Explain the difference between cardinal and ordinal utility. Which is better to use when modeling consumer behavior and why?
Please provide the best answer for the statement.