Which one of the following changes is consistent with a change in an economy's consumption function from C = $500 billion + 0.80Y to C = $700 billion + 0.80Y?
A. An increase in disposable income taxes.
B. An increase in interest rates
C. A decrease in permanent disposable income.
D. An increase in wealth.
Answer: D
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Which firm is not dealing with adverse selection
a. a manufacturer requires a 90 day probationary period for new employees b. a temporary clerical agency requires a typing test c. a manufacturer contracts with suppliers regardless of ISO 900 . status d. Smokers get the worse life insurance rates as non-smokers
Reaching a positive-positive outcome through a commitment strategy:
A. will only benefit the players and will not serve public interest. B. will not benefit anyone. C. can benefit everyone. D. will always benefit everyone.
Which of the following countries cannot use monetary expansion in order to reduce youth unemployment?
a. South Africa b. Spain c. India d. Greece
LAPD needs to increase the size of its police force, and it will cost them $100,000 per year to recruit two full-time officers. The LAPD should ask the mayor to: a. impose an extra charge on citizens who require extra police protection. b. keep the current force and provide less security
c. hire a private firm to provide extra security. d. increase the tax paid by citizens.