An increase in the real wage
A) represents a pure substitution effect.
B) represents a pure income effect.
C) represents a combination of income and substitution effects.
D) causes a parallel shift in the consumer's budget line.
C
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Dodd-Frank addressed many of the issues that led to the financial crisis. Which of the following was NOT addressed by Dodd-Frank regulations?
A) stricter consumer protection laws B) privately owned, government-sponsored enterprises (GSEs) such as Fannie mae and Freddie Mac C) resolution authority over the large financial institutions D) higher requirements on firms dealing in derivatives
In the quantity theory of money, which of these variables is endogenous?
A) the price level B) the velocity of money C) real output D) the money supply E) none of the above
What would best characterize the relationship between corn prices, wheat prices and the public sale of western land (OH, IL, IN, MI, IA, WI, MO) between 1815-1860?
a. All three were very positively correlated. b. Land sales increased first, which drew people to move and produce more crops, which increased the crop prices. c. As land sales increased, corn prices increased and wheat prices decreased as farmers substituted from wheat to corn. d. Land sales were negatively related to both the wheat and corn prices.
Gracyn wants to invest in a specific company. She would like little risk and a guaranteed return. She is not hoping to earn a big profit off her investment, just a reliable return. Which investment would be best for her needs?
a. stocks b. bonds c. retained earnings d. mortgage-backed securities