An increased federal budget deficit resulting from a recession can actually help stabilize an economy through transfer payments because an increased budget deficit will ________ transfer payments and thereby ________ the income of some households.
A. increase; increase
B. increase; decrease
C. decrease; increase
D. decrease; decrease
Answer: A
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Income equality has
A) decreased in the United States as manufacturing has increased. B) narrowed within countries but increased across countries. C) increased within countries but has narrowed across countries. D) not changed in the advanced economies over the past 50 years. E) increased in developing economies as manufacturing has decreased.
Changes in the rate charged by electric power companies are subject to government control because
A. the electric power companies are government enterprises. B. consumer ignorance makes it impossible to know what rates are fair. C. the electric power companies are firms that exhibit economies of scale. D. cutthroat competition would probably occur if the government did not intervene.
Figure 3-3
In , if the initial demand for margarine were D1, the impact of an increase in the price of margarine from $0.35 to $0.40 per pound on consumer purchases would be illustrated as
a.
a shift in the demand curve to D2.
b.
a shift in the demand curve to D3.
c.
a movement upward to the left along the original demand curve D1.
d.
none of the above.
Consider the following regression equation: graduate = 
+ 
female + 
style="vertical-align:middle;" />score + u where graduate is a dummy variable (1 if the person graduated from college, and 0 otherwise), female is a dummy variable (1 if the person is female, and 0 otherwise), and score is the college admission test score.
What does 
measure?
A. The predicted difference in probability of graduating between male and female students, all else equal.
B. The predicted change in probability of graduating when score increases by 1, all else equal.
C. The predicted probability of graduating for female students.
D. The predicted probability of graduating for male students.