Luther experiments with explosives and designs fireworks. Oftentimes he overloads a firework and shatters his neighbors’ windows. What does his negative impact on others best represent?
a. pecuniary cost
b. nonpecuniary cost
c. moral hazard
d. adverse selection
a. pecuniary cost
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Last year, the unemployment rate was 4 percent and the inflation rate was 3 percent. If the natural rate of unemployment is 3 percent, how do you expect inflation to change?
What will be an ideal response?
When considering the factor distribution of income, which of the following income is represented as proprietor income?
A. Rent for capital. B. Interest for loans on capital. C. Labor or capital factors that proprietors put into their businesses D. Wages for workers
The slope of an indifference curve is called the
a. bliss gradient. b. happiness slope. c. average transformation rate. d. marginal rate of substitution.
During the Great Recession, the growth rate of Real GDP _________________ and the inflation rate ___________________
A) increased; declined B) declined; increased C) declined; also declined D) increased; also increased