If Cliff Althoff attends an antique auction, spots a vase that he would be willing to buy at $400, and he is the winning bidder at a price of $400, then Cliff
a. receives $400 in value from this vase
b. receives a consumer surplus of $400
c. should not have purchased the vase because consumer surplus is zero
d. receives zero value from this vase because consumer surplus is zero
e. ended up paying a consumer surplus of $400
A
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An important effect of foreign currency speculators is that
a. they have consistently lost money and have left the market. b. they have pushed exchange rates to wider extremes than most economists predicted. c. they actually limit the volatility of exchange rate movements. d. they have had no effect at all on exchange rate volatility.
Suppose that the market for labor is initially in equilibrium. Suppose that workers' tastes change so that they choose to retire at age 55 rather than age 67 . Then the equilibrium wage
a. and the equilibrium quantity of labor will rise. b. and the equilibrium quantity of labor will fall. c. will rise, and the equilibrium quantity of labor will fall. d. will fall, and the equilibrium quantity of labor will rise.
Suppose the natural rate of unemployment is 4 percent. What is the actual rate of unemployment if actual output is 2 percent above potential output?
A. 3 percent B. 6 percent C. 2 percent D. 0 percent
Answer the following statements true (T) or false (F)
1) When a company declares bankruptcy, stockholders are the first to be paid when company assets are sold. 2) Payments to holders of corporate bonds are known as dividends. 3) Index funds are an example of passively managed funds. 4) Actively managed funds consistently outperform index funds.