Refer to the information provided in Figure 28.1 below to answer the question(s) that follow.
Figure 28.1Refer to Figure 28.1. If the value people put on their leisure time increases, the equilibrium wage rate
A. could change from $9 to $15.
B. would stay at $15.
C. would increase to $15.
D. could change from $9 to $6.
Answer: A
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A depositor cannot directly write checks against: a. demand deposits
b. transaction deposits. c. nontransaction deposits. d. money market mutual fund accounts.
Consider the following regression equation: graduate = 
+ 
female + 
style="vertical-align:middle;" />score + u where graduate is a dummy variable (1 if the person graduated from college, and 0 otherwise), female is a dummy variable (1 if the person is female, and 0 otherwise), and score is the college admission test score.
What does 
measure?
A. The predicted difference in probability of graduating between male and female students, all else equal.
B. The predicted change in probability of graduating when score increases by 1, all else equal.
C. The predicted probability of graduating for female students.
D. The predicted probability of graduating for male students.
If labor supply is perfectly inelastic, the imposition of a payroll tax legislated to be paid by firms will do all of the following except
A. reduce the wage rate by exactly the amount of the tax. B. generate tax revenue paid to the government. C. leave employment levels unchanged. D. reduce total output. E. leave firm profits unchanged.
If a competitive firm maximizes short-run profits by producing some quantity of output, which of the following must be TRUE at that level of output?
A) p > MC B) MR > MC C) p ? AVC D) All of the above.