The effect of an increase in the government budget deficit on the equilibrium level of GDP is essentially the same as a(n):
A. Decrease in saving
B. Increase in saving
C. Decrease in consumption
D. Decrease in investment
A. Decrease in saving
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Firms that employ statistical discrimination in the labor market will earn higher profits in expectation than firms that do not discriminate (and have no effective screens).
Answer the following statement true (T) or false (F)
The bid price for a bond is
A) the minimum price that you are allowed to bid for a bond that is being auctioned by the government. B) the maximum price that you are allowed to bid for a bond that is being auctioned by the government. C) the price that you will receive from a securities dealer if you sell the bond. D) the price that you must pay a securities dealer to purchase a bond.
Refer to the above figure. The highest price that consumers would be willing to pay for quantity Q2 is
A) P2. B) P0. C) P1. D) cannot be determined from the diagram.
We know that increases in population increase the market demand for various goods. The prices of those goods will increase the most if the elasticity of supply is
a. very large b. equal to one c. greater than 3 d. very small e. finite