If a consumer is maximizing utility, she will purchase quantities of output to the point where the price of the last unit purchased is equal across all goods
a. True
b. False
Indicate whether the statement is true or false
False
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Franklin Roosevelt implemented the New Deal in the 1930s, and Congress passed the Full Employment Act of 1946 . Both were examples of the government adopting the ideas of
a. classical economics b. rational expectations economics c. supply-side economics d. neo-Keynesian economics e. Keynesian economics
Assume that the central bank increases the reserve requirement. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and reserve-related (central bank) transactions in the context of the Three-Sector-Model?
a. The GDP Price Index falls, and reserve-related (central bank) transactions become more negative (or less positive). b. The GDP Price Index falls, and reserve-related (central bank)transactions remain the same. c. The GDP Price Index and reserve-related (central bank) transactions remain the same. d. The GDP Price Index rises, and reserve-related (central bank) transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Men and women tend to choose different types of occupations, and so
a. a source of wage differences between men and women is differences in human capital. b. a source of wage differences between men and women is compensating differentials. c. the gap between the earnings of men and the earnings of women is likely even more significant than the data alone indicate. d. we should expect the earnings of women to rise relative to the earnings of men, in order to induce women to accept jobs that they have been reluctant to accept in the past.
Deficit rises in a recession and falls in a boom, even with no change in fiscal policy.
Answer the following statement true (T) or false (F)