The aggregate demand and aggregate supply graph has the
a. quantity of output on the horizontal axis. Output is best measured by real GDP.
b. quantity of output on the horizontal axis. Output is best measured by nominal GDP.
c. quantity of output on the vertical axis. Output is best measured by real GDP.
d. quantity of output on the vertical axis. Output is best measured by nominal GDP.
a
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Which of the following is the source of revenue for Medicare and Social Security in the United States?
A) individual income taxes B) social insurance taxes C) sales taxes D) property taxes
The Arrow-Pratt measure of risk aversion is
A) negative if a person is risk averse. B) greater than one if a person is risk averse. C) negative if a person is risk loving. D) None of the above.
In the circular flow model, firms purchase in the
a. money market and sell in the product market b. product market and sell in the resource market c. resource market and sell in the money market d. product market and sell in the product market e. resource market and sell in the product market
Which of the following is not correct?
a. In a labor market, the wage adjusts to balance the supply and demand for labor. b. A profit-maximizing firm hires workers so long as the wage rate exceeds the value of the marginal product of labor. c. Any event that changes the supply or demand for labor must change the equilibrium wage. d. Any event that changes the supply or demand for labor must change the value of the marginal product.