A microeconomic model CANNOT be used to
A) evaluate the impact of a price change on a firm's revenue.
B) predict the impact on a rise of the minimum wage on unemployment.
C) evaluate the fairness of the proposal to nationalize health insurance.
D) evaluate the effect of an increase in stadium size on the price of a sport team's tickets.
C
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Unlike the minimum wage, the Earned Income Tax Credit does not:
A. create an incentive for employers to lay off low-wage workers. B. improve the economic well-being of the working poor. C. increase total economic surplus. D. cost the government money.
In reality, the Fed's information is fairly imprecise in regards to:
A. unemployment B. actual real GDP C. potential GDP D. inflation rates
Suppose the government decides that a particular commodity is a luxury and decides to fix its price above the market-determined price. What implications could this policy have?
What will be an ideal response?
The regulator that determines the permissible activities any bank may engage in is the
A) Federal Reserve. B) FDIC. C) House Banking Committee. D) Comptroller of the Currency.