Assume Willow's income to spend on either earrings or hairbands is $24. If her budget constraint is pictured in the graph shown, which of the following must be true?
A. Willow will buy more hairbands than earrings because they are less expensive.
B. Willow will buy more earrings than hairbands because they are less expensive.
C. Hairbands must cost $3, and earrings must cost $6.
D. Hairbands must cost $8, and earrings must cost $4.
C. Hairbands must cost $3, and earrings must cost $6.
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Minimum wage laws create unemployment for low-skilled workers because the legal minimum wage is set
A) above the market wage, causing the quantity of labor supplied to be greater than the quantity of labor demanded. B) below the market wage, causing the quantity of labor supplied to be greater than the quantity of labor demanded. C) above the market wage, causing the quantity of labor supplied to be less than the quantity of labor demanded. D) below the market wage, causing the quantity of labor supplied to be less than the quantity of labor demanded.
How are daily gains and losses settled in the futures market?
A. Gains and losses are not realized until the party either accepts delivery or delivers the product at the end of the contract. B. Through withdrawals and deposits in the owners' personal savings account. C. Through withdrawals and deposits in the margin account. D. Through direct cash transfers between the buyer and a seller of each contract.
Taxes are the only mechanism by which the federal government earns money.
Answer the following statement true (T) or false (F)
From the perspective of classical macroeconomic theory, an excess of aggregate spending would:
A. Increase aggregate output and the level of employment in the economy B. Decrease the rate of interest and lower the level of investment C. Increase consumption, and thus move the economy toward the full-employment level of output D. Increase prices, wages, and interest rates, and thus reduce aggregate spending to equal the full-employment level of output