Which of the following is an example of mechanism design?
A. health insurance with zero co-pays
B. an employer pays all sales people a fixed salary
C. reduced prices on bulk purchases
D. welfare reform that limits the amount of time a person can collect benefits
Answer: D
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The Coffee Nook, a small cafe near campus, sells cappuccinos for $2.50 and Russian tea cakes for $1.00 each. What is the opportunity cost of buying a cappuccino?
A) $1.00 B) $2.50 C) 2/5 of a Russian tea cake D) 2 1/2 Russian tea cakes
Based on the table "Real and Nominal GDP," if year one is the base year, then the nominal GDP in year two, is ________
A) 8250 B) 5000 C) 7200 D) 7500 E) none of the above
The Gini ratio is calculated by dividing the area between the Lorenz curve and the diagonal by the:
A. Remaining area below the diagonal B. Total area below the diagonal C. Total area of the box or rectangle D. Remaining area of the box or rectangle
"Natural unemployment" includes those out of work because of
A) expected or normal turnover which will always characterize a part of the labor force. B) structural unemployment caused by normal technological change in production. C) a recession. D) A and B.