Jen is offered a job answering the phone in the State U economics department during lunchtime, from noon to 1 p.m., Tuesdays and Thursdays. Her reservation wage for this job is $15 per hour. If the department chair offers Jen $150 per week, will Jen accept this job?
A. Yes, accepting the job means a positive economic surplus for Jen.
B. Yes, although accepting the job means a negative economic surplus for Jen, still it's better than having no job.
C. No, accepting the job means a negative economic surplus for Jen.
D. There's not enough information to determine what Jen would do.
Answer: A
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In the RBC model, an adverse supply shock causes the decrease in natural real GDP to be minimized when the labor supply curve is
A) downward sloping and extremely flat. B) upward-sloping and extremely flat. C) upward-sloping and extremely steep. D) vertical.
After the terrorist attacks on September 11, 2001, governments within the United States raised expenditures to increase security at airports. These purchases of goods and services are
a. not included in GDP since they do not represent production. b. not included in GDP since the government collects taxes to pay for them. c. included in GDP since government expenditures on goods and services are included in GDP. d. included in GDP only to the extent that the federal government, rather than state or local governments, paid for them.
Evidence shows that children from poor communities typically have:
A. reduced opportunities to acquire human capital. B. equal opportunities to acquire human capital, and choose to acquire more on average than others. C. increased opportunities to acquire human capital. D. equal opportunities to acquire human capital, but choose not to acquire as much on average than others.
Related to the Economics in Practice on page 102: Frank runs a corner delicatessen and one day decides to raise his prices by 10 percent. Total revenue is likely to ________ at the end of the first month of the higher prices since demand is relatively elastic in the ________ term.
A. rise; long B. rise; short C. fall; long D. fall; short