If workers do not believe that policymakers are serious about fighting inflation, they are most likely to push for higher wages, which will ________ aggregate ________ and lead to unemployment or inflation or both, everything else held constant
A) decrease; demand
B) increase; demand
C) decrease; supply
D) increase; supply
C
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A good or service or a resource is excludable if
A) it is possible to prevent someone from enjoying its benefits. B) it is not possible to prevent someone from enjoying its benefits. C) its use by one person decreases the quantity available for someone else. D) its use by one person does not decrease the quantity available for someone else.
Compared to a direct cash transfer payment of an identical amount, food stamps make individuals who desire less food than the value of the food stamps _____
a. better off b. worse off c. indifferent between food and all other goods d. prefer food too all other goods on the margin
If the CPI today is 120 and the CPI five years ago was 80, then something that cost $1 five years ago would cost $1.50 in today's prices
a. True b. False Indicate whether the statement is true or false
Using the Internal Rate of Return approach to investment, one would undertake an investment if the internal rate of return
A) equals zero. B) equals the interest rate. C) exceeds the interest rate. D) is less than the interest rate.