Soo Jin shares a one-bedroom apartment with her classmate. Her share of the rent is $700 per month. She is considering moving to a studio apartment which she will not have to share with anyone. The studio apartment rents for $950 per month
Recently, you ran into Soo Jin on campus and she tells you that she has moved into the studio apartment. Soo Jin is as rational as any other person. As an economics student, you rightly conclude that
A) Soo Jin figures that the additional benefit of having her own place (as opposed to sharing) is at least $250.
B) Soo Jin did not have a choice; her roommate was a slob.
C) Soo Jin figures that the additional benefit of having her own place (as opposed to sharing) is at least $950.
D) the cost of having one's own space outweighs the benefits.
A
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According to the intertemporal substitution effect, when the price level increases, the interest rate
A) rises and the quantity of real GDP demanded increases. B) rises and the quantity of real GDP demanded decreases. C) falls and the quantity of real GDP demanded decreases. D) is not affected.
The major protection against sudden mass attempt to withdraw cash from banks is the:
a. Federal Reserve. b. Consumer Protection Act. c. deposit insurance provided by the FDIC. d. gold and silver backing the dollar.
A market will experience a ____ when the price is above equilibrium and a ____ when the price is below equilibrium
a. shortage, shortage b. surplus, surplus c. shortage, surplus d. surplus, shortage
Just over ____ percent of the unemployed in the United States can qualify for benefits.
A. 30 B. 40 C. 50 D. 60