"Tax cuts, by providing incentives to work, save, and invest, will raise employment and lower the price level." This argument is made by the:
A. Keynesian economists.
B. supply-side economists.
C. classical economists.
D. monetarists.
Answer: B
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Adverse selection is more likely when
a. a job requires specific training b. a job requires intangible or unmeasurable abilities c. the wage offered is above the average of all wages in the market d. the wage is based on true marginal revenue products e. performance can be monitored closely
The Condorcet paradox can arise with:
A. first-past-the-post voting. B. approval voting. C. run-off elections. D. pair-wise majority voting.
On account of a massive construction boom in a country, the demand for iron ore increases substantially. This causes iron ore prices to escalate. Producers increase iron ore mining considerably in the short run, in spite of knowing that this will adversely affect future availability of ore. Which of the following is most similar to the scenario described above?
a. Corn producers hoard their supplies in order to induce a price hike. b. Petroleum manufacturers increase extraction in response to sky-rocketing fuel prices. c. The government of a country makes aforestation mandatory for lumber firms. d. Impressive revenue generation induces the government of a country to impose additional fuel surcharge. e. To discourage smoking, the government of a country increases sales tax on cigarettes.
If autonomous consumption decreases, which of the following is the most likely effect in the short run?
a. a decrease in output, an increase in money demand, and an increase in the interest rate b. an increase in output, a decrease in money demand, and a decrease in the interest rate c. a decrease in output, a decrease in money demand, and a decrease in the interest rate d. an increase in output, an increase in money demand, and a decrease in the interest rate e. an increase in output, an increase in money demand, and an increase in the interest rate