Transfer payments are excluded from GDP.
Answer the following statement true (T) or false (F)
True
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A firm that responds to a regulatory rule in a way that permits technical compliance while allowing the firm to violate the spirit of the regulation has
A) reduced the scope of the lemons problem. B) shared the gains and pains of regulation. C) engaged in a creative response to regulation. D) become a captured regulator.
Hold Jared's preferences for pizza and Pepsi constant. Suppose Jared's income, as well as the prices of pizza and Pepsi, double. As a result,
a. both Jared's indifference curves and his budget constraint change. b. Jared's indifference curves change, but his budget constraint does not change. c. Jared's budget constraint changes, but his indifference curves do not change. d. neither Jared's indifference curves nor his budget constraint change.
Suppose the market for home-grown peppers in the town of Smallville is comprised of two farmers. Explain why they might try to collude
Which of the following will most likely occur during the recessionary phase of a business cycle?
A. Real GDP rises, and the unemployment rate falls. B. Real GDP declines, and the rate of inflation rises. C. The sales of most businesses decline, and the unemployment rate rises. D. Inflation rises, and employment/population ratio falls.