If there is a financial panic and increased uncertainty about the returns in the stock market and bond market, what is the likely effect on money demand?
A. Money demand rises.
B. Money demand declines first, then rises when inflation increases.
C. The overall effect is ambiguous.
D. Money demand declines.
Answer: A
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Consider two countries—A and B. Both the countries are identical except for the fact that institutions are extractive in country A and institutions are inclusive in country B
Given this information, which of the following statements will be true? A) Country A will be characterized by higher output and larger number of entrepreneurs than country B. B) Country A will be characterized by lower output but larger number of entrepreneurs than country B. C) Country A will be characterized by lower output and smaller number of entrepreneurs than country B. D) Country A will be characterized by higher output but lower number of entrepreneurs than country B.
If Marco's output per hour in 2000 was 200 and his output per hour in 2004 was 220, how much would his productivity be in 2004?
A. 20 B. 200 C. 205 D. 220
There are ten states in the democratic nation of Katlandia, and each state has ten thousand residents. Although incomes vary, each Katlandian pays a tax equal to the total cost of all government projects divided by the number of residents in the country. Currently, two states each have one army base. An army base adds $2 million to a state's local economy each year. In addition, in terms of increased security, the annual marginal benefit to Katlandia of having an additional army base is shown below. The total cost of an army base is $8 million per year.
The marginal benefit of adding a third army base equals the local marginal benefit of $2 million plus
the marginal benefit to Katlandia of ________. A. $22.5 million B. $0 C. $1 million D. $3 million
Unemployment due to the fact that workers have difficulty in the search for appropriate job offers is
A. frictional unemployment. B. structural unemployment. C. cyclical unemployment. D. seasonal unemployment.