Even when faced with a relatively powerful seller, some buyers can still exert bargaining power.
Answer the following statement true (T) or false (F)
True
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An expansionary monetary policy: a. decreases inflation in the long run
b. increases unemployment in the long run. c. increases potential GDP in the long run. d. increases inflation in the long run.
People are willing to pay more for a diamond than for a bottle of water because
a. the marginal cost of producing an extra diamond far exceeds the marginal cost of producing an extra bottle of water. b. the marginal benefit of an extra diamond far exceeds the marginal benefit of an extra bottle of water. c. producers of diamonds have a much greater ability to manipulate diamond prices than producers of water have to manipulate water prices. d. water prices are held artificially low by governments, since water is necessary for life.
To make things simpler and focus attention on what really matters, economists:
A. use assumptions. B. ignore all variables. C. think at the margin. D. respond to incentives.
The income transfers that a person receives from Social Security
A) is not related to the amount that they have contributed. B) is a yearly proportion of the amount contributed. C) is the same for everyone whether they contributed to the system or not. D) depends entirely on the amount received from private pensions.