According to the economic theory of labor markets, under what conditions will an individual spend time in nonmarket work?
a. When the utility from leisure exceeds the net utility from work.
b. When the net utility from market work exceeds the net utility from nonmarket work.
c. When the market can produce goods and services more cheaply than the individual.
d. When the individual can produce goods and services more cheaply than the market can.
d
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The tradeoff between inflation and unemployment
a. implies that policies designed to reduce unemployment also reduce inflation. b. was eliminated by improved economic policies in the 1900s. c. is a long-run tradeoff, persisting for decades, according to most economists. d. None of the above are correct.
In determining the beginning of recessions, the NBER Business Cycle Dating Committee looks for evidence of decline in:
A. the rate of inflation. B. specific sectors of the economy. C. the stock market. D. the entire economy.
Which of the following is considered financial capital?
A. Money that accumulates as profit in a firm's checking account. B. Stock and bonds sold to finance operations. C. Funds a firm has in a savings account to be used to buy equipment that wears out. D. All of these are financial capital.
When producing a good generates negative externalities, the private market for that good tends to produce too:
A. little of the product at too low a price. B. little of the product at too high a price. C. much of the product at too low a price. D. much of the product at too high a price.