Can government raise birthrates?
What will be an ideal response?
Several nations such as Russia, France, Italy, and Austria have tried to raise the fertility rate by offering women a cash payment for having a child. Some of these nations also provide maternity leave, free day care, and other subsides to new mothers or their children. The evidence indicates that these incentives have minimal effect in raising the birth rates. Apparently there are other social or economic forces that are contributing to declining fertility rates than just the cost or expense of raising children.
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If the nominal exchange rate were to be expressed as the number of units of domestic currency per unit of foreign currency, and that rate decreases, then the domestic currency has:
A. become overvalued. B. become undervalued. C. appreciated. D. depreciated.
Assuming a market rate of interest equal to 7 percent and anticipated inflation is 2 percent, what is the real (adjusted for inflation) present value of $200 to be received one year from today?
A) $190 B) $214 C) $187 D) $210
The total fixed cost curve:
A. varies with the quantity of inputs used. B. decreases with output. C. increases with output. D. remains constant regardless of output.
In spending all his income on beer and pizza, Fred finds that the marginal utility of the last pizza he consumed is 8, and the marginal utility of the last bottle of beer is 4. The price of a bottle of beer is $1.50. If Fred has maximized his utility, the price of pizza must be:
A. $0.75 B. $1.00 C. $3.00 D. $4.50