For the U.S. economy, money holdings are a
a. large part of household wealth, and so the interest-rate effect is large.
b. large part of household wealth, and so the wealth effect is large.
c. small part of household wealth, and so the interest-rate effect is small.
d. small part of household wealth, and so the wealth effect is small.
d
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
In the classical model, a decrease in immigration would
a. decrease labor supply, increase the real wage, and decrease output. b. increase labor supply and the real wage, and decrease output. c. increase labor demand and the real wage, and increase output. d. reduce real wages and reduce output.
If a monopsonist offers a wage of $6, he finds that 1,200 people are willing to work for him. This means that the
a. marginal labor cost is $6 b. marginal labor cost is $200 c. total labor cost is $1,200 d. total labor cost is $7,200 e. $6 wage is too high
The Occupational Safety and Health Administration (OSHA) has determined that 100 workers are exposed to a hazardous chemical used in the production of diet soft drinks. The cost of imposing a regulation that would ban the chemical is $10 million. OSHA has calculated that each person saved by this regulation has a value equal to $10 million. If the benefits are exactly equal to the costs, what
probability is OSHA using to assess the likelihood of a fatality from exposure to this chemical? a. 0.001 b. 0.01 c. 0.1 d. 1.0