Pick the economic variable that is countercyclical
a. Government transfer payments
b. Prices
c. Consumption
d. Nominal interest rates
e. All of the above are countercyclical variables
.A
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One reason people store wealth is to help smooth consumption over time
Indicate whether the statement is true or false
Given that the characteristics of Social Security are determined through the political process, we would expect that young workers would _____ when given the opportunity to vote on the program
a. oppose increases in Social Security taxes b. oppose increasing the retirement age c. oppose means-testing of retirees d. be strongly in favor of the status quo
In the upward-sloping portion of the individual labor-supply curve, the substitution effect is
a. greater than the income effect. b. less than the income effect. c. equal to the income effect. d. exactly offset by the income effect.
The law of demand tells us that people will buy less of a good if
A) the price of that good increases. B) the prices of other goods increase. C) people's income decreases. D) every factor that can affect people's buying decisions changes.