If workers have better information about their own ability to work than employers do, which of the following situations is present?
A. unemployment
B. asymmetric information
C. discrimination
D. moral hazard
Answer: B
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Let C = 120 + 0.8y. Assume no government or foreign sectors. At the equilibrium level of income, y* = 200, the level of saving is
A) -80. B) -30. C) 96. D) 160.
Providing citizens with enforceable property rights to resources
a. increases resource conservation and decreases wasteful resource use. b. promotes economic prosperity and thus increases demand for environmental quality. c. provides people with a strong incentive not to damage the privately owned resources of others. d. does all of the above.
Bonds may be issued by all of the following except
A. Corporations. B. The federal government. C. Individuals. D. Local governments.
If the price of a normal good falls, the income effect will result in households buying ________ of the good and the substitution effect will result in households buying ________ of the good.
A. more; more B. more; less C. less; more D. less; less