Which of the following is a microeconomic question?
A) When will the government better secure the borders?
B) Why hasn't the federal government raised the minimum wage?
C) How does Fiat decide on the price of the 500 Pop model?
D) What determines the level of U.S. imports and exports?
Answer: C
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Asymptotic distribution theory is
A) not practically relevant, because we never have an infinite number of observations. B) only of theoretical interest. C) of interest because it tells you what the distribution approximately looks like in small samples. D) the distribution of statistics when the sample size is very large.
If the price level remains constant but the wage rate increases, then there will be __________ in production and the SRAS curve will shift __________
A) an increase; rightward B) a decrease; rightward C) an increase; leftward D) a decrease; leftward
Which scenario best exemplifies Gresham’s law?
a. Marla has faith in the value of paper money because she knows it can be exchanged for goods and services. b. Hiro prefers to invest his money rather than keep it in physical form or in a deposit account. c. Charlie does not trust banks, so he keeps all his money in the form of physical currency. d. Indira has silver coins she could use to make a purchase, but she prefers to use paper money.
Some argue that Sweden's generous welfare benefits, which pay people who lose their jobs as much as 80 percent of previous incomes for three years, has resulted in too-high unemployment. This can be seen as an example of:
A. government not correcting externalities produced by the market. B. globalization causing hardworking youth to emigrate. C. market failure due to unfair conditions produced by the labor market. D. government failure in fostering a competitive market environment.