In equilibrium in a mixed market:
A. the percent of low quality goods on the market equals the buyers' estimate of the percent of low-quality goods on the market.
B. the percent of low quality goods on the market equals the sellers' estimate of the percent of low-quality goods on the market.
C. 50% of the goods on the market are low quality and 50% are high quality.
D. all low-quality goods have been driven out of the market.
Answer: A
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TANF compels welfare recipients to go to work after a period of two years.
Answer the following statement true (T) or false (F)
The marginal benefit reduction rate is the fraction
A. of income that is given to every person under the negative income tax credit program. B. by which government benefits are reduced from some beneficiaries. C. taken from business in order to pay for unemployment insurance programs. D. by which government reduces the income of every person in order to support government programs.
In the open-economy macroeconomic model, if investment demand increases, then
a. net exports and the real exchange rate rise.
b. net exports rise and the real exchange rate falls.
c. net exports fall and the real exchange rate rises.
d. net exports and the real exchange rate fall.
Suppose that you lend $1,000 to a friend and he or she pays you back one year later. What is the opportunity cost of lending the money?
A. There is no cost. B. the real interest rate that would have been earned on the money C. the nominal interest rate that would have been earned on the money D. the implicit cost of the money