Refer to Figure 2.1. At point D, demand is:
A) completely inelastic.
B) inelastic, but not completely inelastic.
C) unit elastic.
D) elastic, but not infinitely elastic.
E) infinitely elastic.
B
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In the classical model, what occurs if a wage of $20/hour results in unemployed workers?
A) The wage rate will drop, more workers will be hired, and the unemployment rate falls. B) Producers will quickly create more jobs and hire the unemployed workers, so unemployment is short-lived. C) The workers will go on strike to demand that more jobs be created. D) The government will step in and order firms to hire more workers.
Assuming that the two key restrictions on preferences fundamental to the median voter model hold, list the condition that must be satisfied for the outcome preferred by median voter to be considered economically efficient
List one real world example that comes close to this condition.
In the long run,
a. an increase in the federal budget deficit can lower the interest rate and investment spending. b. an increase in the federal budget deficit can raise the interest rate and investment spending. c. a decrease in the federal budget deficit can lower the interest rate and raise investment spending. d. a decrease in the federal budget deficit can raise the interest rate and lower investment spending. e. a decrease in the federal budget deficit can lower the interest rate and lower investment spending.
A measure of the ease with which an asset can be converted into money without a significant loss of value is called liquidity
Indicate whether the statement is true or false